India’s US exports stay resilient despite Trump tariffs, but trade surplus shrinks: Report

India’s exports to the US have remained resilient despite President Donald Trump’s tariff measures, but the country’s trade surplus with America has narrowed sharply as imports from the US surged, according to Bloomberg News. The US continues to account for around one-fifth of India’s total goods exports, highlighting its importance to the country’s external trade.

Bloomberg News reported that India’s goods exports to the US remained at about 20% of total exports in fiscal 2026, with a similar share recorded for the 12 months through July. However, in value terms, exports to the US were almost flat during FY26, in line with India’s overall export growth of just 1%.

From India’s perspective, the resilience of US-bound shipments is significant as exporters face uncertainty over tariffs and global trade conditions. Despite the higher trade barriers, the US has remained a key destination for Indian products, suggesting that demand for Indian goods has not been substantially disrupted so far.

India’s trade surplus with US shrinks

The bigger shift has come on the import side. India’s imports from the US rose 17% in FY26, more than twice the pace of overall import growth, Bloomberg News reported. Higher energy purchases were a major factor behind the increase.

As imports grew much faster than exports, India’s trade surplus with the US declined to $33.8 billion in FY26, from $40.8 billion in the previous year.

The narrowing surplus could be viewed as a partial outcome favourable to the US, which has repeatedly raised concerns over trade imbalances. For India, however, the figures also underline the changing composition of bilateral trade, with higher purchases from the US helping narrow the gap.

India looks beyond the US market

New Delhi is simultaneously seeking to diversify its export destinations and reduce dependence on individual markets. Bloomberg News noted that exports to some other countries have risen sharply, although shifting substantial trade volumes to new markets is likely to take years.

For Indian exporters, building new overseas markets involves establishing customers, supply chains and distribution networks, making rapid diversification difficult.

The government has stepped up efforts to expand market access through trade agreements. India has signed four trade deals over the past year, with agreements with Oman and the UK already in effect. Around half a dozen more deals are in the pipeline.

Commerce Secretary Rajesh Agrawal told Bloomberg News that India is focusing on economies that collectively account for more than two-thirds of global GDP.

For Indian manufacturers, however, new trade agreements will also bring greater competition in the domestic market as foreign companies gain improved access to India.

For now, India’s exports to the US have held up despite tariff pressures. But with exports showing little growth and the bilateral surplus shrinking, India’s longer-term trade strategy will increasingly depend on market diversification and expanding access to new economies.