India’s trade relationship with the United States has shown significant growth, as highlighted by the rise in merchandise exports and imports between the two nations. According to data from India’s Ministry of Commerce and Industry, 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%, reaching $32.33 billion, up from $25.66 billion.
This increase in trade activity, however, coincides with a slight narrowing of India’s trade surplus with the U.S., which decreased to $18.48 billion from $20.07 billion a year earlier. Despite this, the United States remains India’s largest export destination for the first half of the financial year.
Commerce Secretary Rajesh Agrawal has expressed optimism about the ongoing negotiations for a proposed India-U.S. trade agreement, stating that talks are advancing positively. Both countries are eager to finalize and sign the agreement, which aims to enhance market access and strengthen trade relations, while addressing existing tariff challenges. However, the agreement’s conclusion is also contingent on broader developments in the U.S. tariff framework, particularly the ongoing process under Section 301.
India is particularly focused on securing preferential access to the American market to help domestic exporters compete more effectively on the international stage. The proposed trade agreement seeks to address these concerns by improving market access and fostering stronger economic ties between the two countries.