According to data from the Commerce Department, India’s exports to 8 of its top 20 destinations saw a decline in the first four months of FY26 (April to July). The most significant declines were in exports to Australia, the Netherlands, and Saudi Arabia, which saw drops of 11.2%, 11.8%, and 16.2%, respectively. The overall growth in exports during this period remained a modest 3%.
The article notes that the new U.S. tariffs are a significant reason for the uncertainty in the export market. Exporters are concerned that the reciprocal tariffs and an additional 25% penalty for purchasing Russian oil will make Indian goods uncompetitive.