The 25 percent tariff plus penalty imposed by the US on Indian goods may raise import costs, but a Moneycontrol analysis shows that in several top trading categories, India remains irreplaceable, at least in the near term.
While pharmaceuticals, smartphones, diamonds, shrimps, and jewellery dominated India’s exports to the US in 2024, the data shows that India holds a commanding market share in many of these product categories.
India dominates the US import share in key sectors.
In shrimp, India’s exports to the US were greater than the next three competitors combined. India’s market share exceeded 40 percent, surpassing the combined shipments from Ecuador and Indonesia.
In kitchen and table linen, India held a 40 percent share, with Pakistan trailing far behind at 24 percent. In cut and polished diamonds, India accounted for 45.7 percent of US imports, while jewellery stood at 42.6 percent. Israel’s diamond exports to the US were half of India’s, reinforcing the challenge of substitution.
Out of 50 major Indian export categories to the US with a trade value exceeding $200 million, India held the top position in 15 categories and ranked second in another seven.
In new pneumatic tyres, particularly those used in agricultural and forestry vehicles, India’s exports to the US were more than the rest of the world combined, underlining the US's supply vulnerability in this category.
Alternative markets through FTAs
Even in product segments where India may face increased competition due to the tariff hike, its trade partnerships with countries such as the UK, UAE, Australia, and Japan offer viable market alternatives.
Of the $46 billion worth of India’s exports to the US analysed by Moneycontrol, only $14.4 billion lacked immediate replacement markets among these FTA partners.
In static converters—used in power supply applications—India exported $743 million worth of goods to the US in 2024. But all three FTA partners—the UAE, UK, and Australia—can absorb these exports.
Similarly, in T-shirts, markets such as the UK and Japan present ready alternatives, allowing India to pivot its trade strategy if US demand softens due to tariff impositions.
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