Indian Economy And Exports Survive The Abnormal American Sanctions In September’25
Rajiv Upadhyay 
America under President Trump imposed a tariff of 50 % on India effective from August’25 .
The initial reports of Indian exports in September ’25 suggest that while some sectors like textiles , jewellery have been hit but overall figures of exports reveal that India has survived the month of September with goods exports being $ 36 billion compared to 34 billions in September ’24. However the imports rose to $ 68 billions compared to 58 billions thus increasing the trade deficit by 30 % compared September’24 . However it is estimated that our total exports including services may remain virtually at same level of 67 billions.
The crude oil imports bill increased by 12 % and refined petroleum products exports also declined by 12 % in this period. Exports of electronic goods increased by 6.7 percent but imports too increased by 16 % thus contributing to higher trade deficit .
The retail inflation dropped to 1.5% an eight year low thus saving the Indian population from abnormal increase in prices although reduced GST too contributed in keeping inflation in check.
The domestic consumer demand increased and festival season increased by about 7 percent in manufacturing , services and construction percent compared to last year . GST reduction helped in increasing the sale of cars by 5.8 percent compared to last year September but dropped by 7 % compared to Aug ’25 .
It can therefore be said that the government has saved the economy from any shock due to abnormal increase in US tariffs . In the long run however it needs to reach a good negotiated deal with US which may now be possible as US too will realise that India too has other options and is not solely dependent on USA.
