India’s export market diversification gets boost due to delay in US trade deal

The uncertainty over a US-India trade deal has helped increase the pace of diversification of India’s export markets. Players in export-intensive sectors such as gems & jewellery, textiles & apparel and marine products are beginning to see the results from a renewed push to diversify into alternative markets, after the hefty additional US tariff came into force. Significantly, exports to China registered a sharp growth of 90% to $2.2 billion in November, while shipments to Spain jumped 180%, and to the United Arab Emirates rose 18%. Exports to Tanzania were up more than 15%, reflecting efforts by sectors most impacted by the steep US tariffs to diversify into newer markets. From April to November, shipments to China climbed 33% to $12.2 billion from $9.2 billion in the previous year. Exports of naphtha, a petrochemical feedstock, were up 512% in October and 172% over April-October to $1.4 billion, as per a report.

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