India’s trade with the United States has shown significant growth despite uncertainties surrounding tariffs, as negotiations for a trade agreement between the two nations advance. According to data from India’s Ministry of Commerce and Industry, the country’s merchandise exports to the U.S. increased by 11.1% to $50.81 billion during April to September 2026, compared to $45.73 billion in the same period the previous year. Meanwhile, imports from the U.S. surged by 26% to $32.33 billion from $25.66 billion.
This increase in bilateral trade has led to a narrowing of India’s merchandise trade surplus with the U.S., which decreased to $18.48 billion from $20.07 billion a year earlier. The United States maintained its position as India’s largest export destination in the first half of the financial year.
Commerce Secretary Rajesh Agrawal noted that discussions on a proposed India-U.S. trade deal were progressing positively, with both countries aiming to finalize and sign the agreement soon. However, the completion of the deal may be influenced by changes in the broader U.S. tariff framework, particularly the ongoing process under Section 301.
India is seeking preferential access to the U.S. market to enhance the competitiveness of its domestic exporters against international competitors. The proposed trade agreement is intended to improve market access and bolster trade relations while addressing existing tariff challenges.