India’s trade relationship with the United States continued to flourish during the April-December period of FY25. Despite global economic challenges, India achieved substantial growth in exports and maintained its position as a key trading partner for the U.S.

Key Data: India-U.S. Trade Performance

Metric	April-Dec FY24	April-Dec FY25	Growth Rate	Remarks
Exports to U.S.	$56.8 billion	$60 billion	+5.57%	U.S. accounts for ~18% of India’s total goods exports.
Imports from U.S.	$32.7 billion	$33.4 billion	+1.91%	Reflects steady demand for U.S. goods in India.
Bilateral Trade	$89.5 billion	$93.4 billion	+4.36%	Slightly lower than India’s trade with China ($94.6 billion).
December Exports	~$6.45 billion	~$7 billion	+8.49%	Strong monthly growth indicates robust trade momentum.
December Imports	~$3.43 billion	~$3.77 billion	+9.88%	Surge driven by rising demand for key U.S. products.

India’s Export Categories to the U.S.

India’s exports to the U.S. cover a diverse range of products, showcasing the country’s industrial and manufacturing strength:

Category	Examples	Significance
Pharmaceuticals	Generic medicines, APIs	India is a global leader in pharmaceuticals, with significant U.S. demand.
Textiles & Apparel	Clothing, fabrics, home textiles	Traditional export strength; highly valued in the U.S. market.
Engineering Goods	Machinery, automotive components, electrical equipment	High demand for precision-engineered products.
Gems & Jewelry	Diamonds, gold jewelry, precious stones	Significant contribution to India’s overall export revenue.
Agricultural Goods	Spices, rice, tea, coffee	A trusted supplier of high-quality agricultural products.
Chemicals	Organic chemicals, dyes, pigments	Essential for various industrial applications in the U.S.
Software & IT Services	IT consulting, software development	India is a global IT services powerhouse, with strong U.S. partnerships.
Leather Goods	Footwear, apparel, accessories	Competitive pricing and high-quality craftsmanship.
Electronics	Consumer electronics, components	Increasing market share in the U.S. tech industry.
Rubber & Plastics	Industrial and consumer products	Robust export growth in niche markets.

Opportunities and Challenges

1. Opportunities:
   • Emerging Trade Gaps: Ongoing U.S.-China trade conflicts could create opportunities for Indian exporters to fill the gap.
   • Sectoral Strengths: India’s dominance in pharmaceuticals, IT services, and textiles positions it as a reliable partner for U.S. markets.
   • Policy Support: Bilateral trade agreements and reduced tariffs could further enhance trade.
2. Challenges:
   • Tariff Concerns: Potential U.S. tariffs on Indian goods could impact trade momentum.
   • Global Economic Uncertainty: Fluctuations in commodity prices and global demand may pose risks.

Future Outlook

Experts predict that India-U.S. trade will continue to expand, driven by India’s diverse export portfolio, competitive pricing, and increasing market opportunities amid global geopolitical shifts. Strategic measures, including addressing trade barriers and enhancing product quality, will be crucial for sustained growth.

India’s growing trade partnership with the U.S. reinforces its role as a significant player in the global economy, with the potential for deeper economic ties in the years ahead.