India’s trade relationship with the United States continues to grow robustly, despite uncertainties surrounding tariffs and ongoing negotiations for a trade agreement. 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 from April to September 2026, compared to $45.73 billion in the same period the previous year. At the same time, imports from the U.S. surged by 26% to $32.33 billion, up from $25.66 billion.
Even with this growth, India’s merchandise trade surplus with the U.S. has narrowed slightly, dropping to $18.48 billion from $20.07 billion a year earlier. Nonetheless, the United States remains India’s largest export destination, highlighting the significant economic ties between the two nations.
Commerce Secretary Rajesh Agrawal noted that negotiations for a proposed India-U.S. trade agreement are progressing positively. Both countries are keen on finalizing a deal that could significantly enhance market access while addressing tariff-related challenges. However, the completion of this agreement is partly contingent on developments in the broader U.S. tariff framework, including ongoing processes under Section 301.
India is particularly interested in securing preferential access to the American market, which would enable its exporters to better compete on the international stage. The objectives of the proposed trade agreement include not only strengthening trade relations but also improving market access for Indian goods in the U.S.
As discussions advance, both nations aim to overcome tariff uncertainties and bolster bilateral trade, thereby paving the way for a mutually beneficial economic partnership. The successful finalization of the trade deal could mark a significant milestone in addressing existing trade imbalances and enhancing economic cooperation between India and the United States.