India Targets 40 Countries for Export Diversification Amid US Tariffs

New Delhi : The Ministry of Commerce is launching a series of consultations with exporters from various sectors to devise strategies for diversifying shipments to new markets. This move aims to shield Indian industries from the impact of the 50 percent tariff recently imposed by the United States, according to a senior government official.

The government is planning focused outreach programs in 40 countries, including the UK, Japan, Turkey, and South Korea, to boost exports of textiles and apparel — a sector exposed to an estimated $10.3 billion in US tariffs. These duties, which came into effect on Wednesday, will affect shipments to the US worth more than $48 billion. Key sectors such as textiles, leather and footwear, gems and jewellery, and chemicals are expected to face significant challenges.

The official highlighted the importance of a long-term strategy, saying, “Diversifying markets and export baskets is critical to maintaining competitiveness, especially given the uncertainties caused by the US tariff.”

Over the next two to three days, the ministry will engage stakeholders from sectors like chemicals, electrical components, marine products, leather and footwear, and gems and jewellery to accelerate export diversification efforts.

Regarding textiles and apparel, the official noted that the selected 40 countries, including markets in the EU, Africa, Latin America, and West Asia, represent over $590 billion in imports, offering a substantial opportunity for Indian exporters to expand their market share.

The government aims to position India as a reliable supplier of quality, sustainable, and innovative textile products through a targeted approach. Export promotion councils will play a key role by conducting market research, identifying high-demand products, and linking specialized production hubs such as Surat, Panipat, Tiruppur, and Bhadohi to opportunities in these countries.

To support exporters hit by US tariffs, financial assistance schemes under the Export Promotion Mission — announced in the 2025-26 Budget — are being rolled out. These include collateral-free loans, affordable trade finance, and alternative financial instruments aimed at small exporters in labour-intensive sectors like textiles, gems and jewellery, and marine products.

Additionally, the government is pushing for better utilisation of recently signed free trade agreements and is fast-tracking negotiations with countries including Oman, the EU, and Latin American nations like Chile and Peru to further diversify export destinations.

The US remains India’s largest trading partner, with bilateral trade in goods valued at $131.8 billion in 2024-25. India exported goods worth $86.5 billion to the US last year, accounting for about 20 percent of the country’s total exports valued at $437.42 billion.