India Expands Export Focus to 50 Nations in Response to US Tariff Pressure
GLOBAL EVENTS
India is strategically broadening its export base, reducing reliance on the US by targeting nearly 50 nations, with a strong focus on West Asia and Africa. The move comes as a countermeasure to steep US tariff hikes—from 25% to 50%—that have hit key sectors such as textiles and gems. To strengthen its position against global competitors, the Commerce Ministry is undertaking a comprehensive review to boost market competitiveness.
India is accelerating efforts to diversify its export markets, shifting from a heavy dependence on the United States to a wider network of 50 nations, with West Asia and Africa emerging as key targets. The move aims to cushion the economic shock from steep US tariff hikes.
According to The Economic Times, these priority markets together represent nearly 90% of India’s total exports. Officials from the Ministry of Commerce and Industry confirmed that a detailed, product-by-product review is in progress to pinpoint India’s competitive strengths and compare them with rival suppliers. This analysis is being closely coordinated with export promotion bodies to design tailored strategies for each sector.
The urgency follows Washington’s decision to double import duties on Indian goods—from 25% to 50%—matching Brazil’s rate and marking the highest tariff level applied to any country. The first 25% increase took effect last week, with the remaining hike scheduled for August 27, 2025. Sectors such as textiles, leather, marine products, and gems and jewellery are expected to face the harshest impact. In contrast, major competitors like Turkey, Vietnam, and Thailand will continue to enjoy significantly lower US import duties of 15%, 20%, and 19% respectively, putting Indian exporters at a clear disadvantage.
“The US is our single largest market, accounting for over $10 billion in exports—nearly 30% of our industry’s total global trade. A blanket tariff of this magnitude is devastating for the sector,” said Kirit Bhansali, chairman of the Gem and Jewellery Export Promotion Council.
In response, the government is rolling out customised schemes under the proposed Export Promotion Mission and promoting under-exported products within India. It has also expanded its list of priority countries from 20 to 50, while redirecting goods toward high-growth alternative markets.
However, industry leaders warn that trade diversion through low-tariff countries such as Mexico, Canada, Turkey, the UAE, or Oman could undermine the transparency and integrity of legitimate trade, a challenge policymakers must address alongside diversification measures.