Archive · 23 Sep 2025
India's Tariff-Free Exports to US Face Significant Decline
India's exports to the US, even those not taxed, have fallen recently.
Smartphones and medicines, which aren't supposed to have tariffs, saw a big drop in sales.
Experts are trying to figure out why this is happening because it's unusual and could affect India's economy.
One research group is looking into the problem because the drop is happening month by month.
Some people are worried because they don't understand the drop, especially for items that don't have any extra taxes.
India's smartphone exports to the US fell by 58% from May to August.
Exports of tariff-free products decreased by 41.9% between May and August.
Smartphone exports dropped from $2.29 billion in May to $964.8 million in August.
Pharmaceutical exports decreased by 13.3% during the same period.
The decline in tariff-free exports is under investigation.
- Who
- India and the United States
- What
- Decline in India's tariff-free exports to the US, including smartphones and pharmaceuticals.
- When
- May to August
- Where
- United States
- Why
- Reasons for the decline are under investigation, despite no tariffs on these items.
India's Concerns
US Impact
Impact of Export Decline
India's Concerns
The decline in tariff-free exports is concerning.
US Impact
The decline may be due to various factors and needs further investigation from both parties.
- Smartphone Export Drop (May-August)
- 58%
- Smartphone Exports (May)
- $2.29 billion
- Smartphone Exports (August)
- $964.8 million
- Tariff-Free Export Decline (May-August)
- 41.9%
- Pharmaceutical Export Drop (May-August)
- 13.3%
- Pharmaceutical Exports (May)
- $745 million
- Pharmaceutical Exports (August)
- $646.6 million
Sources
Polished diamond exports to fall 15% to $11 billion in FY26
India’s cut and polished diamond exports set to fall 17-20% in FY26 amid US tariffs: CareEdge
Indias smartphone exports to US falling: GTRI
India’s smartphone exports to US crash 58 per cent in three months, GTRI urges urgent probe - Telegraph India
Why India’s Smartphone Exports To US Plunged 58% Despite Tariff-Free Status? GTRI Notes Scope Of Further Decline
India's smartphone exports to US falling: GTRI
India’s merchandise exports to the US crashed more than 22% from May to August: GTRI report
India's Smartphone Exports To US Falling: Think Tank
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Exports of Tariff-Exempt Mobile Phones Drop 58 PC M-O-M Since May
Exports to US drop, exempt sectors hardest hit