India is moving quickly to shield its exporters after Washington’s surprise tariff hike that doubled duties on Indian goods to as high as 50 percent this week. Trade Minister Piyush Goyal on Friday confirmed that the government is preparing a multi-pronged plan to diversify export markets while simultaneously boosting domestic consumption to cushion industries facing the brunt of the move.
The higher U.S. tariffs, effective August 27, are expected to hit Indian shipments worth over 48 billion dollars. Apparel, textiles, gems and jewellery, shrimp, footwear, animal products, chemicals, and electrical machinery are among the most exposed categories. The U.S. currently accounts for nearly one-fifth of India’s 437.4 billion dollars in merchandise exports, making it New Delhi’s single largest trade partner since 2022.
Officials said India is drawing up targeted outreach programmes in 40 countries ranging from traditional markets like the UK, Japan and South Korea to emerging destinations such as Russia and the UAE. The strategy involves mounting trade delegations, participating in fairs and exhibitions, and hosting buyer-seller meets under a unified “Brand India” banner. Export Promotion Councils have been tasked with conducting market mapping and linking production clusters with demand hotspots abroad.
Together, these 40 markets import more than 590 billion dollars’ worth of textiles and apparel annually, while India’s share remains only 5 to 6 percent. Officials see this as the single biggest opportunity to reposition India as a reliable source of sustainable and innovative textile products.
The commerce ministry will also meet industry leaders across sectors, including chemicals and jewellery, to discuss market diversification plans. Parallelly, work is underway on the Export Promotion Mission announced in the Union Budget for FY26, which is expected to give exporters structured support in navigating global trade turbulence.
