Summary:
India’s exports to the United States grew 13.3% to $45.82 billion in the first half of FY2025-26, despite 50% tariffs imposed on certain imports. The Indian government signals willingness to increase energy imports, including crude oil and natural gas, from the US. Bilateral trade discussions continue amid a US government shutdown and global trade challenges.
Exports to US Surge Despite Tariffs
India has successfully increased its exports to the United States by 13.3% in H1 FY26, reaching $45.82 billion compared to $40.42 billion in the same period last year. This growth comes even after the US imposed 50% tariffs on several Indian products, highlighting the resilience of Indian exporters and the strength of bilateral trade relations.
The Commerce Ministry lauded Indian businesses for maintaining robust supply chains and absorbing additional costs, ensuring exports kept pace during a period of global market turbulence.
India Looks to Boost Energy Imports from US
Government sources indicated that India is exploring ways to diversify its energy import portfolio from the United States. Subject to pricing and availability, India could potentially import an additional $12–13 billion worth of crude oil and natural gas without requiring adjustments to the configuration of domestic refineries. This move reflects India’s strategy to secure energy resources while balancing global supply dynamics.
Ongoing India-US Trade Discussions
India’s Chief Negotiator Rajesh Agrawal is scheduled to travel to the US to join ongoing discussions with the Indian trade team already present in the country. However, the Commerce Ministry noted that full-scale negotiations are currently constrained due to a US government shutdown and a reduced workforce.
The Ministry also highlighted that commodity-wise analysis will be conducted to understand the specific impact of US tariffs on Indian exports, with October trade data expected to provide a clearer picture. While Indian exports continue to outperform last year, certain sectors face ongoing supply chain challenges.
Positive Bilateral Engagement Amid Challenges
Despite external hurdles, India-US trade relations continue to show promise. The US Ambassador-designate to India recently met with top Indian leadership, reinforcing the commitment to maintaining strong trade ties.
The Ministry emphasized that Indian exporters have adapted well to global challenges, and the trade momentum indicates resilience and capacity for further growth. Looking ahead, India aims to expand its energy imports from the US while continuing to strengthen exports in key sectors, navigating tariffs and global uncertainties.
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