Datanomics: India's trade diversification remains a mixed bag so far

India has had to scramble for new markets to diversify its exports, following the 50 per cent tariffs levied by the United States (US) since August. While India has succeeded in its diversification efforts for some product groups, it has been unable to completely offset the export losses in the US market. 

 

Diversification successful for auto parts, marine products and garments ­­­­­­

  India’s exports to the US increased by nearly $6 billion in FY26 (Apr-Nov) year-on-year (Y-o-Y). Exports of telecom instruments, led by smartphones on which the tariffs were not imposed, increased by over $8.4 billion alone Y-o-Y, in the first eight months of FY26. However, India’s US-bound outward shipments of gems and jewellery, agricultural products and textiles declined significantly Y-o-Y between April and November in FY26. Further, the exports of gems and jewellery, textiles, glass, cement and ceramics to non-US economies were unable to counteract the export losses of these products in the US. 

  Exports to UAE and China rise  Exports of gems and jewellery, textiles and ready-made garments, auto components, glass and ceramics to the UAE saw the highest spike in absolute export-value of these products in Apr-Nov in FY26 Y-o-Y.