New Delhi, Nov. 3 -- US President Donald Trump's punitive tariffs have hit Indian exporters hard, and the damage deepened after an additional 25% penalty came into effect on 27 August. The impact was clear in September, when exports to the US plunged 12% year-on-year.

Detailed commerce ministry data released last week revealed which sectors bore the brunt and which managed to offset the losses in India's largest export destination. The US share in India's total exports dropped sharply from a recent high of nearly 24% to just 15% in September. Despite this decline, the US remained India's largest market, but it shifted from a growth driver to a drag on overall export performance.

India's exports still grew 6.7% year-on-year in September,...