India`s exports to United States contract, non-US markets show strength: Crisil
Rating agency Crisil in its latest report has said that India's exports to the United States have contracted, while shipments to non-US destinations have remained robust, surpassing previous growth figures. According to it, merchandise exports to the US had shown a degrowth by 11.9 per cent to $5.5 billion in September 2025, after recording a 7 per cent growth in August 2025. It noted that without the frontloading of shipments ahead of the tariff hike, the fall would have been sharper.
In contrast, exports to non-US markets expanded by 10.9 per cent in September, accelerating from 6.6 per cent growth in August 2025. The decline in US-bound exports followed the Trump administration's decision to impose a 50 per cent tariff on Indian goods, effective from August 27. It cautioned that India's merchandise exports are facing headwinds from the US tariff hikes and a broader slowdown in global growth.
Crisil expects India's current account deficit (CAD) to remain within manageable limits, supported by strong services exports, steady remittance inflows, and easing crude oil prices. The CAD will be around 1 per cent of GDP in the current fiscal, up from 0.6 per cent in the previous year.
