India's merchandise exports drop 11.8% in Oct after US tariff hike: Crisil

India's merchandise exports fell 11.8 per cent year-on-year, since August 2024, to $34.38 billion in October, Crisil said in its report.

This follows a 50 per cent increase in US tariffs on August 27 this year, a move that has subdued exports for the second month in a row, the report said.

The decline in exports was broad-based across petroleum products, gems and jewellery and core sectors.

Petroleum products exports declined 10.4 per cent year-on-year in October, compared to a growth of 15.1 per cent in September. Similarly, core exports slipped to 10.2 per cent compared to 6.1 per cent growth in September 2025, the report said.

Merchandise exports to US decreased 8.6 per cent year-on-year to $6.3 billion in October. This was an improvement from the 11.9 per cent decline in September, according to the report.

The announcement by the US on November 16 to cut tariffs on 254 food items bodes well for some of the agricultural exports, such as tea and spices, the report said.

Exports to non-US markets fell 12.5 per cent year-on-year, compared to 10.9 per cent growth in September.

The report said that India's current account deficit (CAD) is expected to remain manageable, supported by robust services trade, remittances and softer crude prices.

India's merchandise imports remained stable in October 2025 at $76.06 billion, the report said.