India’s trade relationship with the United States is experiencing notable growth, as evidenced by a rise in merchandise exports and imports during the first half of the 2026 financial year. According to data from India’s Ministry of Commerce and Industry, merchandise exports to the US increased by 11.1%, reaching $50.81 billion from April to September, compared to $45.73 billion in the same period the previous year. Meanwhile, imports from the US saw a significant increase of 26%, totaling $32.33 billion, up from $25.66 billion.
Despite this growth, India’s merchandise trade surplus with the US has decreased slightly, narrowing to $18.48 billion from $20.07 billion a year earlier. The United States remains India’s largest export destination during this period, underscoring the importance of bilateral trade relations between the two nations.
Commerce Secretary Rajesh Agrawal highlighted the positive progress in negotiations for a proposed India-US trade agreement. Both countries are striving to finalize and sign the deal, though its completion is contingent on developments within the broader US tariff framework, specifically the ongoing considerations under Section 301.
The potential trade agreement aims to address tariff-related challenges and improve market access, allowing Indian exporters to compete more effectively on the international stage. India is particularly interested in obtaining preferential access to the American market to bolster its domestic export capabilities.
As talks advance, both nations are focusing on strengthening their trade ties while navigating the complexities of the global trade environment. The outcome of these negotiations could have significant implications for future economic relations between India and the United States.