According to a report by SBI Research, India has not suffered much despite the high US tariffs imposed by the Trump administration. The sectors hardest hit by the Trump tariffs have been textiles, jewelry and seafood…especially shrimp. To support exporters, the government has approved a total assistance of ₹45,060 crore, including a credit guarantee of ₹20,000 crore.
Stability in India's exports
According to SBI Research, despite volatility in the global market, India's exports have remained stable. India's exports reached $220 billion from April to September in fiscal year 2026, up 2.9% from $214 billion in the same period last year.
Exports to the United States also rose 13% to $45 billion. However, exports fell by around 12% year-on-year in the month of September.
America's share of India's total exports has declined to 15% from July 2025 to September. The US share of seafood exports was 20% in FY25, which declined to 15% in September. America's share of gemstone exports has declined from 37% to just 6%.
Increase in exports from these countries
Both marine products and ready-made cotton garments witnessed sustained growth in the April-September period. Geographical diversification of exports has also increased.
Countries like UAE, China, Vietnam, Japan, Hong Kong, Bangladesh, Sri Lanka and Nigeria have increased their import share in several product groups.
SBI Research says this increase could also be indicative of indirect imports of Indian goods in some cases. In particular, Australia's share of US gemstone imports increased from 2% to 9%, while Hong Kong's share increased from 1% to 2%.
Government incentive measures for exporters
The Indian government has announced an aid package of ₹ 45,060 crore to help exporters affected by the Trump government's high tariffs. It includes a credit guarantee of ₹20,000 crore, which will especially benefit MSMEs and small exporters.
Meanwhile, global financial turmoil is putting pressure on the rupee. The rupee fell to 89.49 against the dollar on Friday.
Improvement in fiscal deficit
India's fiscal deficit narrowed to 0.2% of GDP in the first quarter of FY26. This is a significant improvement compared to last year's 0.9%. This improvement has been strongly supported by service exports and remittances.
SBI Research predicts that the deficit may widen slightly in the next two quarters, but turn positive again by the end of the fiscal year. The organization expects the full-year fiscal deficit to be between 1.0–1.3% of GDP and the 'balance of payments' to reach $10 billion.
2 Bonuses, 1 Split and 7 Dividends! Which of these stocks do you own?
. Source
