India Boosts Exports Amid US Tariffs: Expands Global Trade Ties and Domestic Manufacturing
August 29, 2025
In anticipation of potential US tariffs under President Trump, India is strengthening its export sector and domestic manufacturing to safeguard its outbound trade.
In response to a 25% reciprocal tariff imposed by the US in August over India's Russian crude oil purchases, India is seeking bilateral trade agreements with the US and expanding Free Trade Agreements with countries like Australia, UAE, Switzerland, and others.
The use of production-linked incentives (PLIs) across 14 key sectors, including electronics, pharmaceuticals, and automobiles, has driven significant growth, with India becoming the world's second-largest mobile producer, and exports rising from Rs 1,500 crore in 2014–15 to over Rs 2 lakh crore in 2024–25.
The Indian government, led by Commerce and Industry Minister Piyush Goyal, is actively implementing measures to boost exports by expanding domestic reach and exploring new global markets.
India has successfully navigated global crises like COVID-19 and nuclear sanctions, and remains confident in expanding its role in international trade, according to Goyal.
India's total goods and services exports reached a record $825 billion in FY 2024-25, with exports in the first four months of FY26 already surpassing $149 billion, indicating strong growth.
The government is focusing on boosting MSME participation in global trade to mitigate the impact of external protectionist policies.
Support measures are being implemented to counteract the 50% US tariffs on Indian exports, with efforts to help sectors like shrimp, leather, footwear, and textiles expand their global presence.
India's pharmaceutical exports have surged to Rs 1.7 lakh crore in the first three years of the scheme, marking a shift from a net importer to a net exporter of bulk drugs.
Grassroots initiatives such as Districts as Export Hubs and E-Commerce Export Hubs are designed to integrate small businesses and artisans into global supply chains.
India signed the Comprehensive Economic and Trade Agreement (CETA) with the UK in July 2025, and negotiations with the EU are ongoing, aiming to diversify market access by the end of 2025.
Goyal highlighted that India's share in global exports is only 2%, but the country remains resilient, driven by domestic consumption and a robust startup ecosystem, despite underestimations of its potential.
Reforms through the National Logistics Policy, PM Gati Shakti, and the National Industrial Corridor Development Programme aim to reduce transport costs, develop manufacturing hubs, and improve infrastructure.
Summary based on 3 sources
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Sources

Business Standard • Aug 29, 2025
Govt to soon bring various measures to boost exports: Piyush Goyal
Business Standard • Aug 29, 2025
Govt to roll out measures to counter US tariffs, boost exports: Goyal
Swarajyamag • Aug 20, 2025
India Steps Up Export Push As Trump’s Tariffs Loom Over Trade Prospects