India`s merchandise exports drop 11.8% in October after US tariff hike: Crisil
Crisil in its latest report has said that India's merchandise exports fell 11.8 per cent year-on-year, since August 2024, to $34.38 billion in October 2025. It said this follows a 50 per cent increase in US tariffs on August 27, 2025, a move that has subdued exports for the second month in a row. The decline in exports was broad-based across petroleum products, gems and jewellery and core sectors.
According to the report, 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. 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.
The report further said the announcement by the US on November 16, 2025 to cut tariffs on 254 food items bodes well for some of the agricultural exports, such as tea and spices. Exports to non-US markets fell 12.5 per cent year-on-year in October, compared to 10.9 per cent growth in September. It said that India's current account deficit (CAD) is expected to remain manageable, supported by robust services trade, remittances and softer crude prices. It added that India's merchandise imports remained stable in October 2025 at $76.06 billion.
