India’s trade relationship with the United States continues to strengthen, as evidenced by a notable increase in merchandise exports and imports between the two countries. Data from India’s Ministry of Commerce and Industry reveals that from April to September 2026, India’s exports to the US surged by 11.1%, reaching $50.81 billion compared to the same period last year. Meanwhile, imports from the US saw a substantial rise of 26%, amounting to $32.33 billion, up from $25.66 billion.
Despite this robust trade growth, India’s merchandise trade surplus with the US has narrowed, decreasing from $20.07 billion to $18.48 billion over the past year. The United States remains India’s largest export destination during the first half of the financial year, underscoring the critical economic relationship between the two nations.
Amid these developments, negotiations for a proposed India-US trade agreement are advancing positively. Commerce Secretary Rajesh Agrawal highlighted that both countries are working diligently to conclude and formalize the deal as soon as possible. However, the finalization of the agreement will partially depend on the evolution of the broader US tariff framework, including ongoing considerations under Section 301.
India is advocating for preferential market access to the US to boost the competitiveness of its domestic exporters against international competitors. The proposed trade agreement aims to enhance market access and fortify trade relations by addressing existing tariff-related challenges.
