India’s merchandise trade with the United States has shown significant growth despite ongoing uncertainties surrounding tariffs. According to the Ministry of Commerce and Industry, India’s exports to the US increased by 11.1% to $50.81 billion during the April–September 2026 period, compared to $45.73 billion during the same timeframe last year. Meanwhile, imports from the US surged by 26%, reaching $32.33 billion from the previous $25.66 billion.
This increase in bilateral trade has led to a narrowing of India’s merchandise trade surplus with the US, which fell to $18.48 billion from $20.07 billion a year earlier. The United States continues to be India’s largest export destination during the first half of the financial year.
Commerce Secretary Rajesh Agrawal has highlighted the positive progress in negotiations for a proposed India-US trade agreement. Both nations are working towards finalizing and signing the deal at the earliest opportunity. However, the agreement’s completion is contingent upon developments in the US tariff framework, specifically the ongoing process under Section 301.
Through this proposed trade agreement, India aims to secure preferential access to the American market, which would enable its domestic exporters to compete more effectively against international competitors. The agreement seeks to enhance market access, strengthen trade relations, and address existing tariff-related challenges.