US tariff relief sparks non‑oil export surge for Indian factories

The study highlights that lower U.S. tariff rates created an opening for Indian exporters to increase non‑oil shipments before the possible re‑imposition of Section 301 duties. Companies capitalised on the brief window, sending more manufactured goods to the United States, which in turn gave a lift to factory activity.

Industry sources say the surge was concentrated in sectors such as automotive components, machinery and electronic accessories. The extra export volume helped offset a slowdown in domestic consumption and contributed to the sector’s overall resilience.

Analysts warn that the advantage may be temporary; any future escalation of trade barriers could reverse the gains, underscoring the importance of diversifying export markets.