Shifting Gears for Indian Exporters
Hello from Tiger Logistics! As the monsoon’s embrace settles across the subcontinent—bringing both renewal and disruption—we’re here to cut through the atmospheric pressure with crisp, insightful updates. Just as anticipating the next squall requires foresight, so too does navigating the ever-changing world of global trade. Join us as we explore the evolving India–US trade talks, and the updates of exports and imports across various sectors.
1. India–US Trade Talks at a Tipping Point
As the July 9 tariff pause reached its deadline, India has not signed any new trade deal with Washington. Talks in Washington focused on key sticking points: India stood firm on protecting its agriculture and dairy sectors, while the U.S. pushed for access to GM crops and processed foods. If no agreement is reached, Indian exports could again face up to 26% tariffs—more than double the current 10%, which would squeeze margins across sectors like textiles, chemicals, and auto parts.
At stake is over $75 billion in Indian goods flowing annually to the U.S.—New Delhi’s largest export market. An interim deal would preserve the status quo and buy exporters time to plan. While the outlook remains uncertain, negotiators extended their stay—a small sign of willingness on both sides to find common ground. For now, businesses are watching closely. Read More
2. Auto Tyre and Two-Wheeler Exports Growth despite global headwinds:
India’s two-wheeler exports surge in June 2025 on strong demand from Africa, Latin America, ASEAN. Total two-wheeler exports grew by 21.4% in FY25 to 41,97,517 units compared to 34,58,416 units in FY24.
Tyre exports from India hit an all-time high of Rs 25,051 crore in FY25, up 9% compared to Rs 23,073 crore clocked in the previous fiscal, commerce ministry data showed.
The US remains the top export destination, accounting for 17% of India’s tyre exports by value, followed by Germany (6%), Brazil (5%), UAE (4%), and France (4%). Segment-wise, farm/agricultural tyres and OTR tyres comprise nearly 60% of the total tyre export value.
3. Farm-based Products: India Tops Global Rice Exports in 2024–25 and $1 billion Turmeric Exports Target by 2030
India shipped a record 16 million tons of rice this fiscal—leading the world ahead of Vietnam (11 Mt) and Thailand (9 Mt). According to data provided by the Directorate General of Commercial Intelligence and Statistics, rice exports, including basmati and non-basmati varieties, in 2024-25 increased by 20% y-o-y to over $12.47 billion compared with $10.41 billion in the year-ago period.
Apart from rice, the Central Government has set a new target with a Turmeric Board at $1 billion in turmeric exports by 2030. Agri exporters are optimistic, eyeing value‑added exports to the Middle East and Europe.
4. China’s Export Curbs Rare Metal Elements
In 2024, China exported around 488.8 million U.S. dollars’ worth of rare earths, significantly less than in the previous two years. Since the introduction of a rare earth export quota by the central government of China in 2009, exports of rare earths from China notably decreased. China might be hoarding these elements to meet their growing demand for semiconductors and also leveraging to make finalize trade US. Unfortunately for India this might create a ripple effect especially for Auto OEMs who rely on Chinese rare earth elements for manufacturing.
Auto OEMs are now looking to secure alternate REE sources to keep EV lines running, while fertilizer traders are eyeing Russia, the Middle East, and domestic output.
5. Jute Imports Restriction from Bangladesh
In late June, India banned imports of Bangladeshi jute products by land, permitting entry only via the Nhava Sheva port.
Why has the Jute Imports from Bangladesh been blocked?
Due to large-scale jute imports from Bangladesh, the prices of domestic jute have fallen below Rs 5000 per quintal in FY25. For context, the Minimum Support Price for jute in India is Rs 5335 per quintal. Six jute mills in India remain closed due to Rs 1400 crore in dues.
Officials cited evidence of state-subsidized dumping: despite duty-free SAFTA status, cheaper Bangladeshi jute (yarn, bags, fiber) had undercut Indian farmers and mills. Previous anti-dumping duties were evaded through technical loopholes, so the government imposed strict port restrictions to stem circumvention.
6. Solar PV cells Imports Surged 141% From China
India’s domestic solar manufacturing capacity has made impressive strides—growing from 38 GW to 91 GW in just over a year, with imports of Chinese solar PV cells surged 141% in FY25. India’s solar photovoltaic (PV) module manufacturing capacity has grown nearly 38-fold, while PV cell production has expanded by 21 times over the last ten years.
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