Over 40% of India's US exports already face zero duty, shows govt data

More than two-fifths of India's exports to the US faced no tariffs before trade agreement was sealed

Indian exports to the US, which already attract zero duty, account for more than 40 per cent of total shipments to the country, according to the latest government data for April–November 2025. This is even before India and the US announced the conclusion of a mega trade deal on Monday night.

 

Key commodities exported from India to the US at zero duty include electronics, led primarily by smartphones; pharmaceutical products, including bulk drugs, which rank among the top three exports to the US; petroleum products; and tea, coffee, and spices.

 

Combined exports of these commodities during April–November stood at $25.91 billion, of total Indian exports to the US of $58.99 billion, accounting for a 44 per cent share. Electronics topped the list at $16.7 billion, followed by pharmaceuticals at $6.18 billion and petroleum products at $2.7 billion. Tea, coffee, and spices together accounted for a relatively small $254 million during the same period.

 

Electronics saw a sharp 120 per cent rise in exports in April–November 2025, driven largely by smartphones. Smartphone exports, led primarily by Apple iPhones, jumped by a staggering 200 per cent to $12.54 billion. India has now emerged as a key supplier to the US smartphone market, which is valued at $110 billion annually, with Apple Inc accounting for $45 billion.

 

In pharmaceuticals, bulk drug exports rose by over 13 per cent, while exports of drug formulations edged up marginally by 0.14 per cent.

 

Looking at calendar-year data, electronics, pharmaceuticals, and petroleum products together accounted for 41.8 per cent of the $78.49 billion exported from India to the US at zero duty. During the first 10 months of 2025, the fastest export growth was recorded in electronics, which grew 122 per cent over the same period last year, followed by drugs and pharmaceuticals, which rose by 12 per cent.

 

The strong performance of electronics, pharmaceuticals, and bulk drugs has largely offset the sharp fall in exports from sectors such as gems and jewellery, textile, and automobile components, following the 50 per cent punitive duty imposed by the US on India. It has also helped ensure that overall exports to the US grew by 11.28 per cent during April–November.

 

With the new trade deal reducing tariffs across the board from 50 per cent to 18 per cent, experts expect these affected sectors to regain traction in the US market, providing a broader lift to India’s exports to the country.

 

The zero-duty advantage

 

·         Zero-duty products, led by electronics, pharmaceuticals, and bulk drugs, already account for over 40% of India’s exports to the US

 

·         Smartphone exports surged more than 200% in April–November, powering the sharp rise in electronics shipments

 

·         Strong growth in electronics and pharmaceuticals offset declines in sectors hit by the 50% punitive duty

 

·         After the trade deal, exporters expect a rebound in gems and jewellery, automobile components, textiles, and ready-made garments