Shipments Worth Over $25 Billion, Covering Pharmaceuticals & Smartphones Secure From Steeper Duties

Shipments worth over $25 billion, covering pharmaceuticals and smartphones, are secure from steeper duties. Trump has exempted pharmaceuticals and certain electronic products, such as laptops, smartphones, from reciprocal tariffs as of now.

Drugs & Pharmaceuticals

India exported drugs and pharmaceuticals as well as electronics products (mostly smartphones) to the tune of $10.5 billion and $14.6 billion in FY25, constituting 29 per cent of its overall outbound shipments to the US.

Indian Exports

The overall share in Indian exports has been rising since January 2025, owing to higher exports of smartphones, thanks to zero duties. Share of outbound shipments to the US in India’s overall exports stood at about 23 per cent in the June quarter of FY26, as well as in January to March of the previous fiscal.

Ministry Of Commerce Data

The country’s overall exports grew less than 2 per cent in the first quarter of the current fiscal and contracted over 4 per cent in the last quarter of FY25, official data from the Ministry of Commerce shows.

Petroleum Is Secure

India’s petroleum exports worth $4.09 billion in FY25 are also currently secure from Trump’s fresh tariffs, thanks to energy being in the exemption list as well. But the US President has yet to specify the nature of an additional penalty he intends to impose linked to India’s energy and arms purchases from Moscow.

Bilateral Trade Agreement

India is presently negotiating a Bilateral Trade Agreement (BTA) with the US, even as Trump will levy a steeper tariff along with an unspecified penalty, specifically linked to Indian exports due to New Delhi’s trade ties with Russia.

Textiles and Apparel: From handloomed silks to industrially manufactured cotton apparel, Indian textiles and garments contribute significantly to India’s exports to the US. In 2025, Indian textile and garment exports to the US surpassed $2.5 billion.