India’s top exports have 30% dependence on US, but some sectors may escape tariff hit

On April 3, the US set India’s tariff rate at 26 percent, pegging a 52 percent trade distortion rate

India’s exports to the US, which accounted for a third of the South Asian nation’s total exports in key sectors such as electronics, gems, jewellery, and drugs, may prove resilient despite high US tariffs, according to a Moneycontrol analysis. While tariffs will undoubtedly bite all nations, Indian exporters of electronics and drugs may emerge stronger as rivals China and Vietnam face steeper duties.

In electronics, for instance, Indian exports to the US were worth $12.6 billion in 2024, making up 31 percent of the country’s electronics exports. While US tariffs will have some impact, India could benefit as China, which accounts for 83 percent of US electronics imports, faces a steeper 54 percent tariff.

On April 3, the US set India’s tariff rate at 26 percent, pegging a 52 percent trade distortion rate. President Donald Trump imposed a 10 perrcent blanket tariff globally, with higher rates for select countries, including India.

The pharma sector could also stave off some of the threat, as some of the categories have been granted exemptions, but gems and jewellery, which has 31 percent dependence on the North American nation and textiles, which have 48 percent dependence, could be more impacted, as India is one of the largest exporters to the US.