Alarming Drop in India's Smartphone Exports to US Raises Concerns

India's smartphone exports to the United States plummeted by 58% from USD 2.29 billion in May to USD 964.8 million in August, according to a report by Global Trade Research Initiative (GTRI). This unexpected decline, described as counter-intuitive, has alarmed experts due to the absence of tariffs on smartphones.

The report highlights the steady fall of smartphone exports month by month amid concerns that this might disrupt India's leading market relationship with the US, which accounted for 44% of India's global exports in this sector. Furthermore, tariff-free products, which make up 28.5% of India's August exports, saw a significant contraction.

Experts, including GTRI Founder Ajay Srivastava, emphasize the need for immediate investigation to understand the underlying causes of the crash and its impact on India's flagship PLI story. Declining exports in various sectors, including pharmaceuticals, jewellery, textiles, and chemicals, further exacerbate these concerns.

(With inputs from agencies.)