India’s trade with the United States experienced significant growth during the first half of the financial year, despite uncertainties surrounding tariffs. According to data from the Ministry of Commerce and Industry, India’s merchandise exports to the US increased by 11.1% to $50.81 billion from April to September 2026, compared to $45.73 billion during the same period last year. Meanwhile, imports from the US surged by 26%, reaching $32.33 billion from $25.66 billion.
This increase in bilateral trade occurred even as India’s merchandise trade surplus with the US narrowed to $18.48 billion, down from $20.07 billion in the previous year. The United States continues to be India’s largest export destination during this period.
Commerce Secretary Rajesh Agrawal indicated that negotiations for a proposed trade agreement between India and the US are progressing positively. Both countries aim to finalize and sign the deal soon, though its completion will partially depend on developments in the broader US tariff framework, particularly the ongoing process under Section 301.
The proposed trade agreement seeks to grant Indian exporters preferential access to the American market, enabling them to compete more effectively with international counterparts. The agreement aims to enhance market access and strengthen trade relations while addressing challenges related to tariffs.