India’s trade relationship with the United States is experiencing notable growth, despite ongoing uncertainties surrounding tariffs. During the period from April to September 2026, India’s merchandise exports to the U.S. increased by 11.1% to reach $50.81 billion, up from $45.73 billion in the previous year. Meanwhile, imports from the U.S. surged by 26% to $32.33 billion, according to data from India’s Ministry of Commerce and Industry.
Despite the rise in bilateral trade, India’s trade surplus with the U.S. narrowed to $18.48 billion, compared to $20.07 billion a year earlier. The United States continues to be India’s largest export destination in the first half of the financial year, reinforcing the importance of the U.S. market to India’s economy.
Commerce Secretary Rajesh Agrawal noted that negotiations for a proposed India-U.S. trade agreement are progressing positively. Both nations are working towards finalizing and signing the deal promptly. However, the completion of this agreement is partly contingent on developments in the broader U.S. tariff framework, including considerations under Section 301.
India is particularly keen on securing preferential access to the American market, which it hopes will allow its domestic exporters to compete more effectively on a global scale. The proposed trade agreement aims to enhance market access and strengthen trade ties while addressing tariff-related challenges that have been a point of contention.
As India and the U.S. continue to negotiate, the focus remains on achieving a mutually beneficial trade relationship that can withstand the pressures of fluctuating tariffs and economic policies. Both countries appear committed to advancing their economic partnership, with a shared goal of facilitating smoother trade exchanges in the future.