India’s exports fall and trade deficit hits record high amid US tariffs; Textile sector badly hit
New Delhi: India’s exports saw a sharp decline of 11.8% in October, dropping to $34.38 billion, owing to the high tariffs imposed by the United States. Alongside this, the trade deficit surged to a record high of $41.68 billion, mainly driven by a rise in gold imports.
According to Kashmir Media Service, India’s imports jumped 16.63% to an all-time high of U$76.06 billion due to high inbound shipments of the yellow metal, silver, cotton raw/waste, fertiliser, and sulphur. This was revealed by Indian government data released recently.
Earlier in September, the trade gap had increased to $31.15 billion which was also the highest in over a year. Crude oil imports too decreased to $14.8 billion in October from USD 18.9 billion when compared to the same month last year.
Meanwhile, the 50% tariffs imposed on India by the US have started hurting textile and apparel exports. Almost all categories including cotton yarn, fabric, made ups, man-made fibres, jute products, carpets and handicrafts witnessed double-digit decline year-on-year (y-o-y) in October.
As a result of the tariffs, textile exports decreased by 12.92% y-o-y last month while apparel exports fell by 12.88%, said the Confederation of Indian Textile Industries (CITI). Cumulative exports of textile and apparel also decreased by 12.91% when compared to October 2024.
Garment and textile exporters said that US buyers are requesting for steep discounts in wake of tariffs, along with cancellation or postponement of orders and reduction in order volumes.
