India-US Trade: What India Exports to the US and What It Imports
US President Trump has announced a 25% tariff on Indian imports starting August 01, citing high duties and India’s ties with Russia. India is currently assessing the impact.
US Tariffs on Indian Goods: President Donald Trump of the United States has imposed a 25 per cent duty on imports from India, along with an unspecified additional penalty effective from August 01. In a statement on his social media platform Truth Social, Trump alleged that India maintained excessively high tariffs, “strenuous and obnoxious” non-tariff trade barriers, and strong defence and energy relations with Russia.
Reacting to the new tariff decision, India stated that it has taken note of the development and is presently evaluating its possible effects. It further mentioned that both India and the United States have been holding continuous trade discussions with the aim of finalising an agreement that is fair, balanced, and mutually advantageous.
With these fresh trade tariffs on Indian imports in the pipeline, here’s a snapshot of India-US trade.
In the financial year 2024, the US imported goods and services worth $87.4 billion from India, while it exported goods and services worth $41.8 billion to India. This resulted in a trade deficit of $45.7 billion for the United States in its trade with India.
India’s key exports to the US included engineering products, electronic items, biologicals, petroleum goods, and readymade garments (RMG) made of cotton. Engineering goods accounted for the largest share with $17.6 billion in exports in FY2024. This was followed by electronic items ($9.9 billion) and biologicals ($8.7 billion). Petroleum-related products worth $5.8 billion and RMG cotton valued at $4.7 billion were also shipped to the US.
The major commodities exported by the US to India in FY24 included: mineral fuels and oil ($12.9 billion), precious stones ($5.16 billion), boilers and mechanical equipment ($3.7 billion), and electrical machinery ($2.4 billion).
