India’s trade with the United States continues to grow, even as negotiations for a new trade agreement progress amid tariff uncertainties. According to data from India’s Ministry of Commerce and Industry, India’s merchandise exports to the US rose by 11.1% to $50.81 billion during April–September 2026, compared with $45.73 billion in the same period the previous year. Meanwhile, imports from the US increased 26% to $32.33 billion from $25.66 billion.
Despite this increase in bilateral trade, India’s merchandise trade surplus with the US narrowed to $18.48 billion, down from $20.07 billion a year earlier. The United States maintained its status as India’s largest export destination during the first half of the financial year.
Commerce Secretary Rajesh Agrawal indicated that negotiations for the proposed India-US trade agreement are moving forward positively. Both countries are eager to finalize and sign the deal, but its completion partly hinges on developments in the broader US tariff framework, including the ongoing Section 301 process.
The proposed trade agreement seeks to offer preferential access to the American market for Indian exporters, enabling them to compete more effectively with international rivals. It aims to enhance market access and strengthen trade relations while addressing challenges related to tariffs.