Electronics export from India: Electronics goods are at second position among the goods exported from India. There are two reasons for this – one is the increasing production of Apple iPhone in India and second is the new ban imposed by America on Russian oil companies.

According to media reports, due to Trump’s new sanctions imposed on Russian oil companies Rosneft and Lukoil, the purchase of Russian crude oil by Indian refineries may be affected. It is obvious that the US sanctions will affect the flow of subsidized crude oil, hence the export of petroleum products will lag behind and electronics export will emerge as the second largest export category.

Electronics export is growing rapidly

Commerce Ministry data shows that in the first six months of the year, electronics exports increased by 42 percent to $ 22.2 billion, of which Apple’s iPhone contributed almost half, compared to $ 15.6 billion last year.

According to the data, electronics exports have established a strong hold as the country’s third largest and fastest growing overseas sales segment during the first half of 2026. Speaking to ET, experts said that with limited purchases of Russian crude, electronics can take the second position among export categories along with engineering products within two years. In 2022, electronics was at number seven in this list, while in 2024 it emerged as the top 10 fastest growing category. Its speed is gradually becoming faster.

Which category is at number one?

In the year 2025, Electronics reached third place in business, leaving behind Gems & Jewelery and Chemicals. Earlier, in 2022, it had already left behind categories like pharmaceuticals and readymade garments.

On the other hand, during this period, a decline of 16.4 percent was also seen in the export of petroleum products, which decreased from $ 36.6 billion to $ 30.6 billion. Despite remaining India’s second largest export category, petroleum has registered a steady decline from $97.4 billion in FY 2023 to $63.3 billion in FY 2025.

Engineering still ranks first in the export category with $59.3 billion, which shows an increase of 5.35 percent from last year’s $56.3 billion. There has been a tremendous increase in the export of electronics goods in the last three years. It increased from $23.5 billion in fiscal year 2023 to $38.5 billion in fiscal year 2025.

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The high tariffs imposed on countries around the world by US President Donald Trump earlier this year had created a stir in the global economy. Although the market gradually recovered, the economies of many countries are still struggling under the pressure of these arbitrary tariffs.

This policy of Trump has been criticized a lot, and many countries have made agreements with America, while the talks between India and America have not been successful yet. Nevertheless, official data shows that the tariffs did not have a major impact on India’s total exports.

No effect of tariff!

In the first half (April–September) of the current financial year 2025-26, Indian exporters have registered positive growth in exports to 24 countries. These countries include South Korea, United Arab Emirates, Germany, Togo, Egypt, Vietnam, Iraq, Mexico, Russia, Kenya, Nigeria, Canada, Poland, Sri Lanka, Oman, Thailand, Bangladesh, Brazil, Belgium, Italy and Tanzania.

A senior official of the Commerce Ministry told news agency PTI that total exports to these 24 countries in the first half were $ 129.3 billion, which shows an increase compared to the same period of the last financial year. This is about 59 percent of India’s total exports. On the other hand, there has been a decline in exports to the US, which was mainly due to the new high tariffs imposed by Washington in September.

Surprising figures came

According to the ministry data, during April to September 2025, India’s total exports increased by 3.02 percent to $ 220.12 billion, while imports increased by 4.53 percent to $ 375.11 billion. Trade deficit during this period came to $154.99 billion. However, negative growth has been seen in India’s exports to 16 countries, which contribute about 27 percent ($60.3 billion) to the country’s total exports.

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Indian exporters can take advantage of the increasing trade tension between America and China. America has imposed new and higher tariffs i.e. import duties on many goods coming from China, due to which Chinese products will become expensive in the American market. Because of this, the demand of American companies and buyers may now move towards India instead of China.

Federation of Indian Export Organizations (FIEO) President SC Ralhan said that this is a good opportunity for Indian exporters. He said that India already exports many types of goods to America and now exports can be increased by taking advantage of this situation. Along with this, it will give Indian companies an opportunity to compete more in the American market and create new buyers.

Due to imposition of tariff on Chinese goods by America, demand may increase towards India. In 2024–25, India exported goods worth $86 billion to America. Regarding this, Ralhan, President of Federation of Indian Export Organizations (FIEO), said, “We can benefit from this increasing tension.”

America imposed 100% tariff on China

On Friday (October 10), America had announced the imposition of additional 100% tariff on goods coming from China from November 1. With this the total duty on Chinese imports will reach approximately 130%. This step was taken after Beijing imposed strict controls on the export of rare earths on October 9. Rare earths are essential for America’s defense, electric vehicle and clean energy industries.

Currently the US imposes 50% duty on Indian goods, which includes an additional 25% tariff. SC Ralhan said, “Now we will benefit from 100% additional tariff on Chinese goods. This will open up huge opportunities for India in the American market.”

Another expert said that due to this tariff, Chinese goods will become expensive in the American market and their competition will reduce. Toy exporter Manu Gupta also believes the change will help Indian businesses attract new buyers. He said, “It will be beneficial for us. Higher tariff will provide a level playing field.” He also told that American retail giant Target has approached him for new products.

Think tank GTRI said that the growing trade dispute between the US and China could increase global prices of electric vehicles, wind turbines and semiconductor parts. In addition, the US is heavily dependent on China for electronics, textiles, footwear, white goods and solar panels.

America is India’s largest trading partner for the fourth consecutive year

America remains India’s largest trading partner for the fourth consecutive year in 2024–25. Bilateral trade reached $131.84 billion, which included exports of $86.5 billion. The US accounts for about 18% of India’s total merchandise exports, 6.22% of its imports and 10.73% of its total trade. Currently India and America are negotiating a bilateral trade agreement.

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Donald Trump has imposed 50% tariff on India’s exports, which will directly affect Indian exporters and workers and can pose a threat to millions of jobs. However, the Modi government has prepared a strategy to deal with this situation. Like the relief schemes implemented during the Kovid lockdown, people and businesses will be given relief through new schemes. Also, work on long -term strategies to find a new market from America and strengthen the global supply chain is going on.

According to the report of Hindustan Times, two senior officials said that the government is first focusing on finding a solution to the cash crisis. Along with this, work is being done on covid-style schemes to save export and employment. Trump’s tariff can cause many problems, such as delay in payment, non -supply of goods, or cancellation of order. The aim of the government is that the exporters should be given necessary relief to continue the operation till the new market is discovered.

Government can announce relief package

According to officials, the government can again bring such relief packages like Corona was given during the lockdown. This is especially necessary for small and medium industries because they are facing cash problems. The government will pay attention to schemes like Emergency Credit Line Guarantee Scheme (ECLGS), in which 100% guarantee will be given loans without bail. This will save millions of small and medium industries from bankruptcy. In the lockdown, the same scheme rescued industries even after the industry was closed for 68 days.

Officials said that these schemes can be changed according to the current situation and its needs. The government will provide immediate relief as well as implement schemes in a phased manner so that long-term strategy can also be prepared. Apart from providing cash, strengthening the existing trade agreements and finding opportunities in the new market will also be faster.

GST will also get relief

Officials said that the government is also considering many reliefs related to tax, including GST reform. Many decisions related to tax reduction and improvement can be taken in the GST Council meeting to be held next week. He also said that due to the strength of the domestic market, India’s economy is safe and tariffs like external factors will not affect it much.

Officials said that the Indian economy remains strong and flexible due to domestic consumption. Although export plays an important role in economic development, it is only a small part of the country’s total GDP of 4.12 trillion dollars. The contribution of exports to the total GDP is about 10% i.e. $ 438 billion. For this reason, India’s economic growth rate was recorded at 7.8% even in the June quarter.

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Democrats of the US House Foreign Affairs Committee have criticized President Donald Trump and his administration. He says that only India is being targeted to buy oil from Russia, while big buyers like China are exempted.

Tariff damage to America and relations
Democrats say that 50% of tariffs on Trump’s Indian imports have damaged Americans and are damaging Indo-US relations made up of the last two decades of bipartite attempts. He said that “instead of banning China or other countries, only targeting India is weakening the US-India relations. It is almost as the case is not related to Ukraine.”

NYT report cited
The panel, citing the report of the New York Times, said that if the Trump administration had imposed a secondary ban on every country buying oil from Russia, the matter was different. But by focusing only on India, this has become the most confused policy result, because China is still buying Russian oil at a discount after getting discounts.

New tariffs and effects
The attack of Democrats came when the additional 25% tariffs (above 25% applied) applied by Trump became effective. In this way the tariff rate has doubled. Trump has linked it to India’s Russian oil trade.

According to the Government of India, these tariffs will have an impact on export of $ 48.2 billion. Officials have warned that new duties can make the US a commercially non-practical, which can reduce employment and slow the economic growth.

Modi government’s attitude
Prime Minister Narendra Modi has clarified that India will not bow under pressure. However, the US has exempted some sectors such as pharmaceuticals and electronic goods, which has given partial relief to India.

Status of trade relations
Indo-US trade relations have been strengthened in recent years, but they are still affected by controversies on market access and domestic political pressures. India was in early countries that started trade talks with the Trump administration, but so far no agreement has been reached as America has been demanding more reach in India’s agriculture and dairy sector.

India Export to America: US President Donald Trump’s decision to impose 25 percent tariffs on India now seems to be heavy on him. Think tank GTRI said in its report on Monday that India’s exports to the US may fall by 30 percent in 2025-26 due to tariffs on India and with this it will be reduced to US $ 60.6 billion.

More tariffs on India from other Asian countries

India’s 25 percent tariff on India is higher than in other Asian countries. After 30 percent tariffs imposed on China, India ranks second in this matter. Whereas in Vietnam (20 percent), Bangladesh (18 percent), Indonesia, Malaysia and Philippines (19 percent) and other Asian countries like Japan and South Korea (15 percent) have imposed less tariffs than India.

Such exports can get a boost

The report suggests the government to create a help desk, use business agreements strategically, include new expoters and resume interest equilibrium scheme to promote exports. In this, exporters get subsidy for rupee export loans before and after exports. The scheme was started from April 1, 2015.

Most sectors of India under pressure

Global Trade Research Initiative (GTRI) said that except for some exceptions, the export of most sectors of India is likely to be damaged. The US has not currently imposed tariffs on pharmaceuticals, energy products and semiconductors, but apart from these, there will be pressure on Indian goods.

As a result, India’s exports to the US – which is currently its largest export market – is estimated to be about 30 percent declined to US $ 86.5 billion in FY 2025 to about 60.6 billion US dollars in FY 2026. Countries like Pakistan and Vietnam can take advantage of this.

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India’s Goods and Services Export: Fio, the top body of exporters, said that the country’s total goods and service exports are expected to reach $ 1,000 billion during the current financial year 2025-26. The total exports in the previous financial year 2024-25 were $ 824.9 billion. Fio (Federation of Indian Export Organization) President S.K. C. Ralhan says that international buyers are focusing on diversity in their procurement source in view of global economic uncertainties. This is expected to increase a good increase in exports.

This year there is a huge increase in exports

He said that along with this, the free trade agreements being made with various countries of India will also help in increasing the country’s exports. In the financial year 2025-26, the export exports are estimated at 12 percent to 525 to 535 billion dollars, which was $ 437 billion in 2024–25. In the current financial year, service exports are estimated to increase from 465 to 475 billion to $ 475 billion, which was $ 387 billion in the last financial year.

S. C. Ralhan said that there is a significant increase in exports in all major areas in this financial year. Electronics, engineering fields, chemicals, textiles and costumes, pharma and even agriculture are expected to increase well. Petroleum and gem and jewelery exports will also be in positive scope in the coming year.

Export will increase in these sectors

The main areas helping to promote export include electrical and electronics ($ 60 billion), machinery ($ 40 billion), chemicals ($ 30 billion), drug ($ 30 billion), petroleum ($ 70 billion), apparel and napkins, apron and other clothes (23 to 25 billion dollars), gems and jewelery ($ 30 billion) and agriculture ($ 55 billion).

Red Sea started exporting through the way

Fio said that Indian export consignments are gradually passing through the Lal Sea Marg. Due to regional tension, these routes were interrupted for months. Now gradually there is movement of goods from this path, which is a sign of improvement in exports. Last year, an important vessel transport route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, the situation around Bab-al-Mandeb Strait, deteriorated due to the attacks of Yemen’s Huki terrorists.

Due to the attacks, the vessels were carrying goods through the Cape of Good Hope associated with the African continent. As a result, there was a delay of about 14 to 20 days and freight and insurance costs were increasing. Fio Director General Ajay Sahai said, “The export of goods is gradually starting from this important sea route. This will reduce the time taken in transport.

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India’s Export Widens: India’s export deficit rose to $ 26.42 billion in the month of April. This is the highest in the last 5 months. However, due to better performance of electronic and engineering goods, India’s export has jumped 9.03 percent to $ 38.49 billion. The imports of the data released by the Commerce Ministry on Thursday have increased by 19.12 percent in April on an annual basis and increased to $ 64.91 billion in April.

The trade deficit has increased the most since 2024 due to increase in imports. At that time it was $ 31.77 billion. The areas where exports have increased is- tobacco, coffee, sea products, tea, stitched costumes, rice, gems and jewelery, spices, petroleum products and medicine.

Trade deficit increased due to increase in imports

Electronic exports increased from 39.52 percent to 3.69. The export of engineering goods has been 11.28 percent of $ 9.51 billion. Similarly, import in crude oil in the month of April has increased by 25.6 percent to $ 20.7 billion. So the import of gold has increased to $ 4.86 percent and $ 3.09 billion.

According to the data, the price of service exports stood at $ 35.31 billion in the month of April, compared to $ 30.18 billion during the same month. While the estimated price for imports of services was $ 17.54 billion in April 2025, while in April last year it was $ 16.76 billion.

More exports may increase

Commerce Secretary Sunil Barthwal says that he hopes that India will maintain the speed of its export in this way and despite global uncertainties, it will prove to be a good year. He said that the strategy of focusing focus on twenty countries and 6 items is getting positive results. In addition, the Ministry of Commerce will continue to focus on it. He said that free trade agreement with many countries is going to reach the final conclusion quickly.

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Onion expert duty: The central government has officially removed 20 percent of the duty imposed on onion exports. This decision will be effective from 1 April 2025. The Revenue Department has issued this notification on the recommendation of the Department of Consumer Affairs. Onion exporters are expected to get a lot of relief from this step.

Why was duty imposed?

For some time, the government had taken tough steps to maintain the availability of onion in the domestic market and control prices. These included export duty, minimum export price (MEP) and complete export restrictions for some time. The ban remained in force for about 5 months from 8 December 2023 to 3 May 2024. The 20 per cent export duty was imposed on 13 September 2024, which has now been removed.

Increase in exports despite restrictions

However, despite the sanctions, India exported a lot of onion. A total of 17.17 lakh MT (LMT) onion was exported in the financial year 2023-24, while the financial year 2024-25 (till 18 March 2025) was exported 11.65 lakh MT onion.

Interestingly, the monthly exports reached 1.85 lakh MT by January 2025 as compared to 0.72 lakh metric tons in September 2024, which shows heavy global demand.

Relief to farmers and consumers

The decision to remove export duty shows the government’s efforts to give farmers a fair price and to keep onion prices stable for consumers. According to recent market data, the weighted average price of onion has fallen by 39 percent compared to last year. Also, in the last one month, onion prices have decreased by 10 percent in the retail market, which has given relief to consumers.

Rabi crop record production

According to the Department of Agriculture and Farmers Welfare, this year Rabi onions are estimated to be 227 lakh metric tonnes, which is 18 percent more than the previous year’s 192 lakh metric tonnes. Rabi onion, which is 70-75 per cent of India’s total onion production, plays an important role in keeping prices stable until the kharif crop comes in October-November.

This year, record production of Rabi crop will prove to be helpful in further stabilizing onion prices in the market in the coming months. This news is relieved for the country, because since August 2023, there were challenges due to decrease in domestic production and high prices in the international market. The removal of export duty will help onion exporters increase competition in the global market.

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