[Global Times correspondent in Pakistan Cheng Shijie Global Times special correspondent Ren Zhong] According to India's "Economic Times" report on the 19th, a recent research report released by Crisil, India's largest credit rating and economic research institution, shows that India's exports to the United States shrank in September after the high tariff of 50% imposed by the United States on India came into effect on August 27th. According to a recent report released by the Global Trade Research Initiative (GTRI) headquartered in Delhi, India, India's exports to the United States have dropped by 37.5% in the past four months. Srivastava, co-founder of the organization, said: "Since the implementation of the tariff policy, the United States has become India's hardest-hit export market."

Decreased for four months.

According to the GTRI report, India's exports to the United States have declined for four consecutive months since June: India's exports to the United States fell 5.7% in June to US$8.3 billion; in July, they fell 3.6% to US$8 billion; in August, they fell 13.8% to US$6.9 billion; in September, they fell 20.3% to US$5.5 billion, the largest decline in India's exports to the United States in a single month this year. The GTRI report emphasized that the sharp decline in India's exports to the United States in the past four months directly reflects the impact of the 50% tariff policy and indicates that the Indian government needs to conduct policy review to safeguard trade interests.

According to the Indian Times, the most affected industries include the textile and pharmaceutical industries, with annual exports of $38 billion and $305 billion, respectively, accounting for a significant proportion of India¡¯s total exports of $400 billion, while the United States is the main export destination for both industries.

As far as the textile industry is concerned, the Textile Industry Federation of India said that the industry is expected to see an export decline of more than 25% in the next six months. In response, the Indian government has announced the extension of the tariff exemption policy for imported cotton to reduce the export difficulties that the textile industry may face. According to the analysis of the Times of India, after the textile industry loses its export market to the United States, the impact on itself may be relatively small, because the main market of India's textile industry is still domestic. In the last fiscal year, the total output value of India's textile industry was US $179 billion, of which the domestic market was worth US $142 billion, accounting for nearly 80%.

The U.S. is India¡¯s largest drug export market, with $10 billion in exports to the U.S. in the previous fiscal year. According to experts in the field, for most Indian pharmaceutical companies, the U.S. market is the main source of profit, and high tariffs will have a big impact on these companies¡¯ operations.

In comparison, the engineering product category, which accounts for more than 20% of India's exports to the United States, was temporarily affected after the tariffs, including industrial machinery, steel air materials, steam fittings, etc. According to the Indian Express, because of the long order cycle and strong demand in these fields, specific segments also enjoy special tariff exemption, so the short-term impact is less.

Increased exports to non-US markets

While tariffs have led to a significant drop in exports to the United States, Indian companies are actively looking for overseas markets to replace exports to the United States.Crisil report shows that in September, India's total exports to non-U.S. markets grew by 10.9%, further accelerating from 6.6% in August, a significant buffer for India's downturn in the US market.

In terms of the jewelry industry, the U.S. is India's largest single export market, India exports to the U.S. almost $10 billion annually.But the Economic Times reports that before the new tariff measures entered into force, the trend of declining India's jewelry industry exports to the U.S. has been quite significant, so the industry as a whole has early begun to explore the export shift and diversification of the market.

According to reports, from April to September this year, India's exports to the jewelry industry in the UAE increased by 65%, reaching $3.2 billion, to a certain extent compensating for the decline in exports to the United States.

Electronics is also the main source of India's export market growth since last year, according to the Economic Times, India's electronics exports reached $222 billion between April and September this year, a significant 60% increase from the same year, accounting for more than 10% of total exports.

According to the report, because Apple has gradually increased its production capacity in India in recent years, a large number of Apple phones sold to the U.S. have been assembled in India. In order to protect U.S. enterprises and consumers' interests, the U.S. has exempted electronic products from tariffs. However, India is still in the downstream in the electronics manufacturing industry, and high exports are behind high imports of electronic components and low profits. In the context of the U.S. tariff shock, electronic exports contribute less to the overall economy of India.

Increase communication with customers in other regions

According to India's Business Standards, in September, the Indian government made adjustments on the policy side to help industries and enterprises face difficulties due to tariffs.In particular, in labour-intensive agriculture, the Indian government increased the total export of rice and sugar by lifting export bans and increasing export quotas, to compensate for the large decline in exports to U.S. Sea products.

In addition, according to India's Tribune, the Indian rupee continues to weaken due to a series of factors including the central bank's regulatory policies and US-India tariff frictions, which gives Indian exports a certain price advantage in non-American countries. Currently, many bulk shippers of Indian seafood are communicating with customers in the Middle East and Southeast Asia, hoping to take advantage of the price advantage brought by the devaluation of the Indian rupee to give priority to selling products previously exported to the United States to these regions.