The recent U.S. tariffs on steel and aluminum are set to disrupt nearly 10% of global trade in these commodities, affecting over half of the 121 countries engaged in this sector. However, India appears to be in a relatively secure position due to its diversified export strategy.

Key Insights on India’s Steel and Aluminum Exports

Factor	Details
Global Trade Impact	U.S. tariffs affect 10% of global trade in steel and aluminum.
India’s Export Diversification	India exports steel to a wide range of countries, with only 55% of its exports going to its top 10 trading partners (compared to a global average of 86.5%).
U.S. Market Share	The U.S. accounted for 7.5% of India’s steel exports in 2023.
Comparative Advantage	Countries like China and Turkey also rely on diversified markets, with less than 50% of exports going to top trading partners.
Overall Resilience	India’s diverse export destinations reduce its vulnerability to U.S. tariffs.

India’s Main Export Commodities

India has a diverse range of export commodities that contribute significantly to its economy. Below is a breakdown of the key sectors:

Commodity Category	Examples of Products
Agricultural Products	Rice, spices, tea, coffee, and fruits
Textiles and Apparel	Cotton textiles, garments, silk, and woolen products
Gems and Jewelry	Diamonds, gold jewelry, and precious stones
Chemicals	Pharmaceuticals, fertilizers, and organic chemicals
Engineering Goods	Machinery, vehicles, and electronic equipment
Petroleum Products	Refined oil and petroleum derivatives
Leather Goods	Leather garments, footwear, and accessories
IT and Software Services	Computer software and IT services
Fruits and Vegetables	Fresh and processed food products
Other Manufacturing Goods	Appliances, consumer goods, and furniture

Conclusion

India’s ability to export across multiple regions offers it a degree of protection against geopolitical trade shifts. While the U.S. tariffs on steel and aluminum are expected to create significant disruptions worldwide, India’s diversified export strategy ensures that its economy remains resilient in the face of such challenges.