The Congress party, on September 23, 2025, raised alarms regarding a significant drop in exports of tariff-free goods, such as pharmaceuticals and smartphones, to the United States. Party leaders emphasized that this decline is “certainly not a seasonal fall” and points to more serious underlying issues.
In a statement shared on X, Congress leader Jairam Ramesh noted that a decrease in Indian exports to the USA, particularly those impacted by higher Trump-era tariffs, was anticipated. “And indeed they have fallen,” he confirmed. However, he posed a critical question: “But why and how are India’s TARIFF-FREE exports to the USA falling?”
Ramesh cited an analysis from the esteemed New Delhi-based research organization, GTRI, as a serious cause for concern, even though the data covers only a four-month period.
Package | A collection of ground reports and analyses, uncovering the impact of these tariffs on different facets of the Indian economy.
The GTRI analysis revealed that exports of several product categories, including gems and jewellery, seafood, textiles and garments, and chemicals, have all seen a downturn. More alarmingly, India’s exports of products typically free from tariffs also experienced a significant drop, plummeting from $3.37 billion in May 2025 to $1.96 billion in August 2025. This unexpected decline encompassed crucial items such as pharmaceuticals and smartphones.
“This is certainly not a seasonal fall,” Mr. Ramesh reiterated, highlighting the persistent nature of the issue.
According to GTRI’s findings released on Monday, September 22, India’s smartphone exports to its primary market, the U.S., saw a staggering 58% decrease, falling from $2.29 billion in May to $964.8 million in August. This consistent monthly reduction is particularly troubling.
The Global Trade Research Initiative stressed that this trend is alarming and counter-intuitive, especially since these smartphone exports are not subject to tariffs. “This demands urgent investigation to uncover the real reasons that are driving the fall,” the GTRI urged.
Further emphasizing the point, the GTRI reported that tariff-free products, which constituted 28.5% of India’s August exports, experienced the sharpest contraction at 41.9%. Their value plummeted from $3.37 billion in May to $1.96 billion in August.
Pharmaceutical exports also saw a notable weakening, with a 13.3% drop from $745 million in May to $646.6 million in August, adding to the overall concerns about India’s trade performance with the U.S.