After the United States under President Donald Trump imposed a sweeping 50% tariff on a large basket of Indian exports, India's trade outlook began appearing gloomy. The tariffs impacted more than 60% of India’s exports to the US, including critical labour-intensive sectors such as textiles, gems and jewellery, marine products and leather goods, while some other sectors such as pharmaceuticals, electronics. Indian exports to the US have plunged sharply by 37.5 per cent following imposition of tariffs on most Indian goods, according to a report by the Global Trade Research Initiative (GTRI). The report showed that shipments to the U.S. fell 37.5 per cent over four months, from USD 8.8 billion in May 2025 to USD 5.5 billion in September 2025, marking the sharpest and most sustained decline of the year.