India's Smartphone Exports to US Falling: GTRI

India's smartphone exports to its largest market, the US, fell 58% from USD 2.29 billion in May to USD 964.8 million in August, think tank GTRI said on Monday.

It said that the development is alarming and counter-intuitive as there are no tariffs on smartphones.

"This demands urgent investigation to uncover the real reasons that are driving the fall," the Global Trade Research Initiative (GTRI) said.

Smartphone exports, India's largest export to the US, plunged 58% from USD 2.29 billion in May 2025 to USD 964.8 million in August, it said, adding the fall was steady month by month.

It was USD 2 billion in June and USD 1.52 billion in July.

In FY2025, the US remained India's top smartphone market with USD 10.6 billion imports (44% of India's global exports of USD 24.1 billion), followed by the EU at USD 7.1 billion (29.5%).

It added that tariff-free products, which account for 28.5% of India's August exports, posted the sharpest contraction of 41.9%, falling from USD 3.37 billion in May to USD 1.96 billion in August.

Pharmaceuticals also weakened, with exports dropping 13.3%, from USD 745 million in May to USD 646.6 million in August.

GTRI Founder Ajay Srivastava said that exports of Indian goods which are facing high tariffs in the US are also recording fall in exports.

Jewellery exports fell 9.1% to USD 228.2 million in August, it said, adding diamond-studded gold jewellery and cut and polished diamonds too recorded a negative growth.

Seafood shipments plunged 43.8 per cent, from USD 289.7 million in May to USD 162.7 million in August.

Textile, garment, and made-up exports to the US fell 9.3%, sliding from USD 943.7 million in May 2025 to USD 855.5 million in August 2025, it added.

Similarly chemical exports dipped 15.9% to USD 451.9 million between May and August 2025.

"August data only partly reflects the impact of higher tariffs -- India paid 10% tariffs until August 6, 25% until August 27, and 50% only after August 28. September will be the first full month where ...the declines in textiles, gems and jewellery, shrimp, chemicals, and solar panels could deepen further," Srivastava said.

He said that India's exports to the US have fallen for a third straight month -- a predictable outcome of steep tariffs.

"More worrying is the unexpected crash in tariff-free exports like smartphones and pharmaceuticals, threatening to derail India's flagship PLI success story. Policymakers and industry must urgently probe the causes and act before this slide deepens," he added.