India and the United States continue to witness significant growth in their trade relations, despite ongoing uncertainties surrounding tariffs. According to the Ministry of Commerce and Industry, India’s merchandise exports to the U.S. increased by 11.1% to $50.81 billion during April to September 2026, up from $45.73 billion in the same period the previous year. Meanwhile, imports from the U.S. surged by 26% to $32.33 billion, compared to $25.66 billion a year earlier.
This growth in trade has led to a narrowing of India’s trade surplus with the U.S., which decreased to $18.48 billion from $20.07 billion. Nevertheless, the United States held its position as India’s largest export destination in the first half of the financial year.
Commerce Secretary Rajesh Agrawal highlighted the positive progress of negotiations for a proposed India-U.S. trade agreement. Both nations are aiming to finalize and sign the deal promptly. The outcome of these talks is partly contingent on developments in the broader U.S. tariff framework, specifically the ongoing process under Section 301.
The proposed trade agreement seeks to enhance market access and fortify trade relations between India and the U.S., while also addressing challenges related to tariffs. India is particularly focused on securing preferential access to the American market to better position its domestic exporters against international competition.