India's smartphone exports to the US fell by 58 percent, impact of tariffs becoming visible

India's exports of smartphones to the US declined by 58 percent to $964.8 million in August, down from $2.29 billion in May this year. Economic research institution GTRI, on Monday, termed the situation as alarming and abnormal, since the smartphone has no tariffs. The real reasons behind the decline must be examined.

According to GTRI data, smartphone exports from India to the US have declined every month since May this year. Smartphones worth $2 billion were exported to the US in June this year, and $1.52 billion in July.

In the financial year 2024-25, the US was still India's biggest market for smartphones. In that period, India shipped $10.6 billion worth of smartphones to the US. The European Union placed second in the US market with a shipment of $7.1 billion worth of smartphones.

GTRI cited that exports to the US of tariff-free products dipped by 41.9 percent in August this year. This accounts for 28.5 percent of India's overall exports.

Pharmaceuticals also witnessed a decline, with exports falling by 13.3 percent to $646.6 million. Ajay Srivastava, founder of GTRI, said that exports of Indian products facing high tariffs in the US are also declining.