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 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 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 was $2 billion in June and $1.52 billion in July.

US exports could decline further as Sep marks first month of full 50% tariffs

India's exports to the United States are showing signs of further decline as September marks the first full month under 50 per cent tariffs on key products, according to a report by GTRI. The report noted that August data only partly reflected the impact of higher tariffs, as India paid 10 per cent tariffs until August 6, 25 per cent until August 27, and 50 per cent only after August 28. With September being the first complete month where all Category C exports face 50 per cent tariffs, sectors such as textiles, gems and jewellery, shrimp, chemicals, and solar panels could see a deeper fall. It stated "September will be the first full month where all Category C exports face 50 per cent tariffs, meaning the declines in textiles, gems and jewellery, shrimp, chemicals, and solar panels could deepen further".