NEW DELHI — India is aggressively shifting its export strategies and diversifying its trade partners to mitigate potential economic losses resulting from a 50 percent tariff rate imposed by the United States. According to a Bank of Baroda report released Friday, the country is currently undergoing a structural shift in its export profile to navigate the absence of a formal trade deal with Washington.
The report highlights that Indian exporters have engaged in “frontloading”—speeding up shipments to the U.S. between April and August 2025 to secure cost advantages before further trade barriers took effect—and are now actively re-routing goods to alternate global markets.
Data shows that the share of Indian marine products has seen a significant uptick in China and Thailand. Similarly, the United Arab Emirates has become a larger recipient of Indian electronic goods, while gems and jewelry exports have shifted notably toward Hong Kong.
“The shares may be small on an individual basis but cumulatively with more focus on diversification, integration with global supply chains, competitive pricing and improved logistics, a stronger substitution effect may to some extent insulate the negative impact of higher tariff rate of the US, till we have a formal trade deal in place,” said Dipanwita Mazumdar, an economist at Bank of Baroda.
While the U.S. remains India’s dominant export market, the period between September and November 2025 indicated a clear trend of diversification, with exports to the rest of the world picking up as shipments to the U.S. were trimmed.
The report suggests that there is significant room for further expansion in sectors such as readymade garments, textiles, and heavy machinery. Analysts noted that these specific sectors are now the primary focus of targeted policy initiatives designed to boost competitiveness and protect domestic output from international tariff fluctuations. Overall, India is gradually building substitution channels through a wider geographic outreach to ensure economic resilience. (Source: IANS)
