Falling exports of tariff-free products to US cause of concern: Congress

The Congress on Tuesday voiced concern over falling exports of tariff-free products like pharma and smartphones to the United States, saying it is "certainly not a seasonal fall".

In a post on X, Congress leader Jairam Ramesh said, "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.


He said an analysis by the respected New Delhi-based research outfit GTRI is a cause for concern, even if the data is only for 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 USD 3.37 billion in May 2025 to USD 1.96 billion in August 2025. This includes exports of pharmaceuticals and smartphones," Ramesh said in his post.



"This is certainly not a seasonal fall," he also said.

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

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

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