NEW DELHI: The Congress on Tuesday raised concern over the decline in India’s tariff-free exports to the United States, including pharmaceuticals and smartphones. The party said the drop is not a seasonal fall.In a post on X, Congress leader Jairam Ramesh wrote, “It was only to be expected that India’s exports to the USA that have been subjected to higher Trump tariffs would fall. And indeed they have.”“But why and how are India’s TARIFF-FREE exports to the USA falling?” he asked.Citing an analysis by the Global Trade Research Initiative (GTRI), a New Delhi-based think tank, he noted that the trend is troubling even though the numbers cover only four months.”Of course, it reveals that exports of gems and jewellery, seafoods, textiles and garments, and chemicals have fallen. But surprisingly India’s export of tariff-free products have also declined from $3.37 billion in May 2025 to $1.96 billion in August 2025. This includes exports of pharmaceuticals and smartphones,” he said.“This is certainly not a seasonal fall,” the political leader further added.Data from GTRI shows that smartphone exports to the US, India’s largest product segment in that market, fell 58% from $2.29 billion in May to $964.8 million in August. The think tank called the development alarming and counter-intuitive as smartphones are not subject to tariffs.“This demands urgent investigation to uncover the real reasons that are driving the fall,” OTI cited the think tank as saying.Overall, tariff-free exports, which made up 28.5% of India’s shipments to the US in August, dropped by 41.9% between May and August, from $3.37 billion to $1.96 billion. Pharmaceutical exports also slipped 13.3% in the same period, from $745 million to $646.6 million.
