India’s trade relationship with the United States continues to strengthen, as evidenced by an increase in merchandise exports despite ongoing tariff uncertainties. Data from India’s Ministry of Commerce and Industry revealed an 11.1% rise in exports to the US, reaching $50.81 billion from April to September 2026, compared to $45.73 billion in the same period the previous year. Similarly, imports from the US surged by 26% to $32.33 billion, up from $25.66 billion.
This growth in bilateral trade, however, has led to a narrowing of India’s merchandise trade surplus with the US, which decreased to $18.48 billion from $20.07 billion a year earlier. Despite this, the United States retained its position as India’s largest export destination in the first half of the financial year.
Commerce Secretary Rajesh Agrawal highlighted the ongoing negotiations for a proposed India-US trade agreement, indicating that they are progressing positively. Both nations aim to finalize and sign the agreement swiftly, though its conclusion will partly depend on changes in the US tariff framework, including those related to Section 301.
The proposed trade deal seeks to provide preferential access for Indian exporters to the American market, which would enable them to compete more effectively with international counterparts. The agreement aims not only to enhance market access and strengthen trade relations but also to address existing tariff-related challenges between the two countries.