India-US Trade
Scale, Structure, and the Tariff Dispute
India-US bilateral merchandise trade reached a record $132.2 billion in FY2024-25, up from $119.7 billion the previous year. India runs a trade surplus of $40.82 billion with the US, making India among the top sources of the US trade deficit — a key political trigger for Trump's tariff actions.
- India's exports to US (FY2024-25): $86.51 billion — primarily pharmaceuticals, IT services (counted separately), textiles, gems and jewellery, engineering goods.
- US exports to India (FY2024-25): $45.6 billion — primarily energy, machinery, aircraft, defence equipment.
- Under the deal, the US tariff on Indian goods falls from 25% to 18% — one of the lowest rates in Trump's reciprocal tariff framework, lower than the EU (20%), Japan (24%), and China (34%+).
- India's average applied MFN (Most Favoured Nation) tariff rate is approximately 17%, compared to the US average of approximately 3.3% — the disparity that Trump labelled India a "tariff king."
● Tracked since February 05, 2026 · last seen March 16, 2026 · updates as the daily brief publishes
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