India’s exports narrowly ticked up in December while its shipments to the US fell just 1% despite steep US tariffs, new data showed.
India’s trade deficit widened but remains “under control,” as the country pivoted to China and Africa to diversify trading partners, an ING researcher wrote, noting that electronics have especially bolstered India’s exports.
While some local media hailed the figures as proof that “the fear of Trump’s tariffs has dissipated,” an Indian economics professor argued the data masks deeper vulnerabilities: Regional economic divisions are quickly emerging, as the country’s South and West manufacture high-tech exports, while the North produces low-value agricultural goods and remains disconnected from global supply chains.