Aapada mein avsar: Read how India is finding new export markets in Europe and Asia to counter the effects of US tariffs

The steep 50% tariffs imposed by the United States from 27th August have forced India to find ‘Aapada mein avsar‘ (opportunity in crisis).

Several sectors that earlier depended heavily on the American market are now quickly redirecting their products to other regions. Items like shrimps, gems and jewellery, auto components, and electrical machinery have found many buyers in Asian and European countries.

A recent report from the Commerce and Industry Ministry shows that while exports to the US have fallen sharply across some categories, overall numbers have not collapsed because exporters are tapping new destinations.

Gems, Jewellery and Auto components find new buyers

One of the clearest examples of this shift can be seen in the gems and jewellery sector. Exports of these items to the US fell by a massive 76% in September compared to last year. Yet, overall gems and jewellery exports dropped only 1.5%. This was possible because shipments to the UAE increased 79%, to Hong Kong by 11%, and to Belgium by 8%.

A similar trend was visible in auto components. Exports to the US dipped 12% in September, but total auto component exports actually grew 8%. Germany, the UAE and Thailand picked up a large part of the redirected shipments, showing how Indian exporters are turning to multiple markets at once.

Marine products are seeing the strongest growth among all categories. Exports rose 25% in September and 11% in October. China, Japan, Thailand and the European Union accounted for most of this rise. Exporters say demand from these countries has helped them deal with the sudden slowdown from the US.

These trends strengthen the idea that India’s strong trade links with countries across Asia and Europe can reduce the immediate shock of losing access to the American market. However, this may not be true for all sectors.

Marine sector expands EU approvals

The government has been pushing for diversification, especially for products like marine items that already have good demand in many regions. Since the US tariffs were imposed, the number of Indian seafood units approved by the European Union has gone up by 25%. At least 102 additional units have now been allowed to supply to the EU, which is India’s second-largest seafood export market.

Before this, 502 Indian units were listed as eligible exporters to the EU. Many of the latest approvals had been pending for more than five years. Exporters say these new permissions will help increase shipments significantly.

Exporters asked not to slash prices

The government has also asked exporters to explore new markets like Russia. A senior official said around 25 fishery units in India may soon get approval to export to Russia as well. Authorities believe these diversification efforts are useful.

The Commerce Department has advised exporters not to reduce prices too sharply in the search for new buyers. Officials say that slashing prices may harm India’s long-term position in those markets.

Some US shipments are still taking place because buyers need temporary replacement stocks. But these orders are slowly being taken over by countries in East Asia and Central America. Indonesia and Ecuador, where US tariffs are lower at around 19% and 15%, have emerged as major gainers. Interestingly, both these countries have increased their prices too, which still keeps Indian goods competitive in some segments.

Tariffs in the EU may also come down from the current level of around 12% once the India–EU Free Trade Agreement (FTA) is finalised. This could boost India’s fishery exports to Europe by 20–25%. EU approval is considered an important quality benchmark, and once exporters crack that market, it often becomes easier to enter other regions too.

To support exporters, the government has announced assistance worth Rs 45,060 crore, including Rs 20,000 crore in credit guarantees for bank loans. A special support scheme announced in the Union Budget has also been put into operation.

Data shows diversification is helping

A recent report by SBI’s Ecowrap said India’s export diversification strategy is showing early signs of success. Between April and September this year, India’s total merchandise exports grew by 2.9%. Surprisingly, exports to the US also grew 13% during this period, although this may be because exporters rushed to ship goods before the tariffs took effect.

But by September, US-bound exports fell 12% year-on-year. At the same time, India’s exports to countries like the UAE, China, Vietnam, Japan, Hong Kong, Bangladesh, Sri Lanka and Nigeria increased sharply. This suggests that many goods that once went to the US are now being routed elsewhere.

The report pointed out that the US is now importing many items from Indonesia, Thailand and Vietnam, where shipments have risen as exports from India and China have dropped. Container shipments from India to the US fell 18.4% in October 2025 compared to the previous year, while China’s shipments declined 16.3%. Meanwhile, Indonesia’s shipments grew 10.1%, and Thailand and Vietnam grew around 3.6%.

Overall, India has managed to soften the blow of US tariffs by actively shipping goods to other countries. Many sectors, especially those with strong demand in Asia and Europe, have adjusted quickly.