India is proactively seeking new export markets and strengthening existing trade relationships to reduce its reliance on the United States, amidst the continuing stalemate in US-India trade negotiations and escalating tariff threats from Washington. The much-anticipated comprehensive bilateral trade agreement between the US and India remains stalled as of early 2026, attributed to disagreements over tariffs, regulatory issues, domestic political considerations, and broader geopolitical factors. This strategic pivot comes as Indian exporters grapple with significant challenges. The US unilaterally imposed 50% tariffs on various Indian goods in August 2025, which has severely impacted labour-intensive sectors such as textiles, garments, handicrafts, and leather. Exporters have resorted to deep discounts, diverting excess capacity to domestic markets, and re-routing shipments through neighbouring countries to cope. Adding to this pressure, US Senator Lindsey Graham indicated that President Donald Trump has approved a Bill proposing a staggering 500% tariff on imports from countries, including India, that continue to trade with Russia, particularly concerning Russian oil. The prospect of a 500% tariff is causing widespread apprehension among Indian exporters, especially in the textile and apparel industry, which accounts for 28-30% of India's exports to the US. Buyers are reconsidering orders, threatening to derail capacity utilization, lead to factory shutdowns, and job losses across the sector. In response, India has accelerated its trade diversification strategy, actively expanding market links with regions like Southeast Asia, Africa, Latin America, and the European Union. Reports suggest this diversification is already yielding early results, with non-US markets helping to offset some of the losses incurred from reduced shipments to the US. The Indian government is also initiating measures like an "Export Promotion Mission" and reforms in the Foreign Trade Policy 2023-28 to support exporters and foster new trade connections. Furthermore, parliamentary committees are engaged in studying the ramifications of these US tariffs on Indian textile and garment exporters, highlighting the gravity of the situation.