India Shifts Exports to Africa, South Asia as US Tariffs Bite

As of November 14, 2025, the Indian government is actively working to shift its export focus from the United States to new markets in Africa and South Asia. The ministries of micro, small and medium enterprises (MSME) and commerce have been leading this initiative, collaborating with Indian embassies abroad.

Currently, India exports around $18 billion worth of products annually to a group of eight countries, accounting for 4.2% of its total goods exports in the last fiscal year. The government has now launched a pilot project to diversify these export destinations, targeting friendly and emerging markets in Africa and neighboring regions like Nepal, Sri Lanka, and Bhutan.

The plan involves holding stakeholder consultations and buyer-seller meets, where potential buyers from these new markets are invited to connect with Indian suppliers. The goal is to redirect goods initially meant for the US to these alternative destinations, providing a buffer against the impact of the new US tariff regime that came into effect in August.

The pilot project has already begun in key African markets, including Ghana and Togo, which are being identified as potential hubs for rechanneling Indian exports, particularly in sectors like textiles, pharmaceuticals, engineering goods, and processed foods. The government is coordinating with Indian missions, export promotion councils, and local chambers of commerce to facilitate the necessary logistics, certification, and market push in these countries.

This export diversification strategy is part of a broader effort to build resilience and ensure the continuity of Indian exports, which would otherwise face high tariff barriers in the US market. The government aims to create lasting access to new markets in Africa and South Asia, mitigating the immediate trade shocks from the US while also exploring long-term growth opportunities.