India’s merchandise trade with the United States experienced significant growth despite ongoing uncertainties surrounding tariffs, according to recent data from the Ministry of Commerce and Industry. During the period from April to September 2026, India’s exports to the U.S. increased by 11.1%, reaching $50.81 billion, up from $45.73 billion in the same timeframe last year. Imports from the U.S. saw an even more substantial rise of 26%, climbing to $32.33 billion from $25.66 billion.
This growth in trade, however, led to a narrowing of India’s merchandise trade surplus with the U.S., which fell to $18.48 billion from the previous year’s $20.07 billion. The United States maintained its position as India’s largest export destination during the first half of the financial year.
Negotiations for a proposed India-U.S. trade agreement are reportedly moving forward with optimism. Commerce Secretary Rajesh Agrawal indicated that talks are progressing positively, with both countries aiming for a swift conclusion and signing of the agreement. Nevertheless, the finalization of the deal will be influenced by broader developments within the U.S. tariff framework, including ongoing processes under Section 301.
The proposed trade agreement seeks to enhance market access and strengthen bilateral trade relations while addressing the challenges posed by tariffs. India is particularly focused on obtaining preferential access to the American market, which would help domestic exporters better compete against international rivals.