Archive · 22 Dec 2025
India-US Trade: Exports Drop, Propane Hits Record
India's exports to the United States went down a lot from May to September 2025, but then they started to go back up a little by November.
The biggest drop was in the early months, and the lowest point was in September.
After that, exports started to get better, but not all the way back to where they were before.
This happened because of changes in the taxes on these exports.
At first, people were unsure about the taxes, so they waited to buy things.
But once the taxes were set, they started buying again, even if it cost more.
Some things, like gems and jewelry, went down and then up again.
Meanwhile, India is buying more propane from the US to balance its trade and reduce its dependence on other countries for energy.
Additionally, India's natural gas import bill went down by 11.5% from April to November 2025.
This is because India used less natural gas and produced a little less gas domestically.
India still relies on other countries for about half of its natural gas needs, with most coming from Qatar, the US, and the UAE.
India's exports to the US fell 20.7% overall from May to November 2025, with the sharpest drop of 37.7% between May and September.
Exports partially recovered by 27.3% between September and November, reaching $7.0 billion in November.
Key sectors like gems and jewelry, electronics, and pharmaceuticals showed a decline followed by a recovery.
Tariff rates increased from 10% in May to 50% by August 28, with the lowest export levels recorded in September.
The initial decline was attributed to uncertainty around tariff hikes, while the partial recovery was due to adjustments by exporters and buyers.
- Who
- India and the United States
- What
- India's exports to the US fell sharply and then partially recovered, while US propane exports to India hit a record high. Additionally, India's natural gas import bill declined by 11.5% during April to November 2025.
- When
- Between May and November 2025 for exports, and January-September 2025 for propane. The natural gas import data is for April to November 2025.
- Where
- India to the United States and vice versa
- Why
- Due to uncertainty around tariff hikes and subsequent adjustments by exporters and buyers, and India's efforts to diversify its energy imports. The decline in natural gas imports is attributed to a decrease in consumption and a slight reduction in domestic production.
India
United States
Tariff Hikes
India
India's exporters faced uncertainty and financial strain due to increased tariffs.
United States
The US implemented tariff hikes to protect domestic industries and negotiate better trade terms.
Energy Imports
India
India is diversifying its energy imports to reduce dependence on specific countries.
United States
The US is increasing its energy exports to India to strengthen trade relations and reduce India's reliance on other suppliers.
- Overall Export Decline
- 20.7%
- Export Value in May 2025
- $8.8 billion
- Export Value in September 2025
- $5.5 billion
- Export Value in November 2025
- $7.0 billion
- Gems and Jewellery Export in May 2025
- $500.2 million
- Gems and Jewellery Export in September 2025
- $202.8 million
- Gems and Jewellery Export in November 2025
- $406.2 million
- Tariff Rates in May-July 2025
- 10%
- Tariff Rates in August 2025
- 10% (Aug 1-6), 25% (Aug 7-27), 50% (Aug 28 onwards)
- Tariff Rates in September 2025
- 50%
- US Propane Exports to India (Jan-Sep 2025)
- 1,327 thousand barrels
- US Propane Exports to India (2023)
- 304 thousand barrels
- US Propane Exports to India (2021)
- 418 thousand barrels
- India's LPG Imports (FY25)
- 20.67 million tonnes
- India's LPG Imports (H1 FY26)
- 10.84 million tonnes
- US LPG Contract for 2026
- 2.2 million tonnes per annum
- Natural Gas Import Bill (Apr-Nov FY26)
- $9.2 billion
- Natural Gas Import Bill (Apr-Nov FY25)
- $10.4 billion
- LNG Import Volume (Apr-Nov FY26)
- 23,102 mmscm
- LNG Import Volume (Apr-Nov FY25)
- 25,370 mmscm
- Domestic Natural Gas Production (Apr-Nov FY26)
- 23,439 mmscm
- Domestic Natural Gas Production (Apr-Nov FY25)
- 24,247 mmscm
- Natural Gas Consumption (Apr-Nov FY26)
- 46,239 mmscm
- Natural Gas Consumption (Apr-Nov FY25)
- 49,170 mmscm
- India's Reliance on Imported Gas (Apr-Nov FY26)
- 50%
- India's Reliance on Imported Gas (Apr-Nov FY25)
- 51.5%
- Qatar's Share in India's LNG Imports (FY25)
- 41%
- US Share in India's LNG Imports (FY25)
- 19%
- UAE Share in India's LNG Imports (FY25)
- 13%
Sources
India’s exports to US fall sharply till September, show partial recovery by November: GTRI
Interest equalisation scheme to be largely restricted to MSME exporters
US propane exports to India at record high in 2025
Rebound in India’s exports to US reflects short-term coping strategy: GTRI
Zero-margin deals, tariff-exempt sectors push exports to US in November
Export Rebalance
Exports, the rupee and FII flows: Mirae Asset CIO on what’s driving markets now