Last-Minute Export Surge Averts Tariff Impact
NEW DELHI: In a frantic bid to circumvent Donald Trump’s newly imposed reciprocal tariffs, Indian companies have ramped up exports, bringing them close to last year’s impressive goods export figure of $437 billion. Reports indicate that Apple alone dispatched five planeloads of iPhones and other products to the U.S. within a mere three days, aiming to stock its warehouses and stabilize prices amidst looming tariff threats.
Apple and Electronics Lead the Charge
Apple’s significant export activity is not an isolated incident. The tech giant’s unusual spike in shipments from both India and China has been noted, particularly during what is typically a lean season for exports. This surge is mirrored across other electronics sectors, as companies scramble to mitigate potential price increases due to the tariffs. An official source confirmed that the uptick in shipments is a strategic move to ensure product availability and price stability in the U.S. market.
Moreover, the gems and jewellery sector has also seen a dramatic increase in exports. Between April 1 and April 4, exports to the U.S. surged nearly six-fold, reaching $344 million compared to just $61 million during the same period last year. This spike is attributed to American buyers’ pressure to finalize purchases before the 10% tariffs took effect at midnight on Saturday. Apparel exports have similarly been expedited as companies seek to navigate the impending tariff landscape.
March Export Bump Fuels Optimism
India’s overall goods and services exports are projected to exceed $800 billion for the fiscal year ending in March. Despite a 3% decline in goods exports during 2023-24, cumulative exports reached $778 billion. Commerce and Industry Minister Piyush Goyal had previously urged exporters to increase their shipment volumes in the final weeks of the fiscal year, following an 11% drop in exports in February.
Kirit Bhansali, chairman of the Gems & Jewellery Export Promotion Council, confirmed a notable increase in exports during the last week of March. Initial estimates suggest that gems and jewellery exports remained steady at $1.7 billion for the month. Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO), expressed optimism, predicting exports could surpass $40 billion in March 2025, compared to $41.6 billion in March 2024.
Government’s Strategic Focus on Export Growth
The Indian government is actively targeting an increase in goods exports for the current financial year, confident in the sustained growth of the services sector. A senior government official noted that lower oil prices could benefit manufacturers, while U.S. retailers might reduce profit margins on various goods to counteract the effects of high tariffs.
Typically, March sees a surge in external trade, but the recent tariff threats have created uncertainty among businesses. Companies are currently stockpiling goods in anticipation of potential price hikes, which may impact the volume of shipments in the first quarter of the current fiscal year. Exporters remain hopeful that as the months progress, the uncertainty will diminish, allowing trade to stabilize and return to normalcy.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
