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U.S. tariffs dent Indian exports, September shipments fall nearly 12%
Recent U.S. tariff measures have taken a clear toll on India’s overseas sales. Shipments to the United States in September dropped by almost 12%, prompting policymakers and industry groups to roll out steps aimed at reducing the shock and protecting exporters.
What measures are being pursued
- Short-term relief: Authorities are focusing on easing cash flow for exporters through credit lines, expedited refunds and temporary duty relief to keep operations running while markets adjust.
- Market diversification: Support is being channelled into helping firms find alternative buyers beyond the U.S., including trade promotion campaigns and exploring regional markets.
- Competitiveness support: Programs that lower production costs or boost value-addition — such as input subsidies, logistics improvements and skill development — are being prioritised.
- Engagement and dispute resolution: Diplomatic and trade channels are being used to engage with U.S. counterparts and explore legal options where appropriate.
How businesses can respond
Exporters can take practical steps now to limit downside risk. These include:
- Reviewing pricing and contract terms to absorb short-term tariff impacts.
- Accelerating plans to diversify customer bases and geographic exposure.
- Applying for government support measures and tapping available credit facilities.
- Improving logistics and supply-chain resilience to reduce costs.
Outlook
The immediate decline in September shipments highlights the vulnerability of export-dependent firms to sudden policy shifts. The measures underway may stabilise trade flows if they’re implemented quickly and coupled with diplomatic progress. For exporters, agility — in pricing, markets and operations — will be key to navigating the near term.