India’s merchandise trade with the United States has seen significant growth, with exports rising by 11.1% to $50.81 billion during the April–September 2026 period compared to the same timeframe last year. Imports from the US surged even more sharply, with a 26% increase to $32.33 billion, as reported by the Ministry of Commerce and Industry.
This expansion in trade comes despite ongoing uncertainties surrounding tariffs. Consequently, India’s trade surplus with the US has slightly narrowed, dropping to $18.48 billion from $20.07 billion the previous year. The United States remains India’s largest export destination in the first half of the financial year, underscoring the robust economic ties between the two nations.
Commerce Secretary Rajesh Agrawal has indicated that negotiations for a new India-US trade agreement are advancing positively. Both countries are striving to finalize and sign this deal, which aims to enhance market access and strengthen trade relations. However, the agreement’s completion is partially contingent on the broader US tariff framework, including proceedings under Section 301, which could influence the final terms.
India’s government is keen on securing preferential access to the American market to help its domestic exporters compete more effectively on the global stage. The proposed trade agreement seeks to address tariff-related issues while fostering closer economic collaboration between the two countries.