India’s Export Strategy Shifts Amid Trump-Era Tariffs: PM Modi Meets Export Leaders to Tackle Impact

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Diversification Towards Europe, West Asia, and Africa Begins to Show Results

New Delhi, November 3, 2025

As the impact of U.S. tariffs on Indian goods continues to challenge key export sectors, the Government of India has launched a series of measures to minimize the effect on trade. Prime Minister Narendra Modi held a high-level meeting with top export organizations to discuss strategies for sustaining export growth amid the evolving global trade scenario.

The meeting came at a time when crucial sectors — including engineering goods, textiles, leather, and marine products — are grappling with tariff burdens as high as 50 percent. While most labor-intensive industries have been hit hard, the government remains focused on diversifying export destinations and strengthening bilateral trade ties with other regions.

Exporters have voiced concern that the heaviest impact has fallen on labor-driven sectors, which hold political and economic importance in states such as Tamil Nadu, Gujarat, and Bihar. In response, the government has advised exporters to expand into alternative markets — particularly in Europe, West Asia, and Africa — to offset losses from the U.S.

According to senior officials, India is accelerating negotiations for Free Trade Agreements (FTAs) with the European Union, New Zealand, and Chile, which are expected to open new avenues for Indian products in the coming months.

Monday’s meeting was attended by Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal, Cabinet Secretary T.V. Somanathan, and secretaries from the Textiles, Commerce, and MSME ministries. Industry representatives from textiles, apparel, marine products, engineering, leather, and gems & jewelry also participated in the discussions.

The Modi government continues to push for measures to cushion exporters from tariff shocks. Adjustments in GST rates, along with expanded trade agreements, are part of India’s evolving export strategy. Encouragingly, while exports of textiles and marine products to the U.S. have declined, shipments to France, Japan, and Vietnam have shown significant growth — indicating that India’s diversification strategy is gradually yielding positive results.