India’s exports to US soar to record $11.2 bn in March, trade surplus widens sharply

India’s exports to the United States reached a record high of $11.2 billion in March 2025, surpassing the $10 billion milestone for the first time and showing a nearly 50% increase over the 12-month average. This increase in exports led to a total bilateral goods trade of $15 billion for the month, as reported by the United States Census Bureau.

This surge in trade follows a 90-day tariff pause announced by US President Donald Trump and a growing momentum towards a potential India–US trade agreement.

The strong export performance in March concluded a successful first quarter for bilateral trade. From January to March 2025, India exported goods worth $27.7 billion to the US and imported $10.5 billion, resulting in a trade surplus of $17.2 billion in India’s favour.

"India blows the doors off its record for exports to the U.S. in March- $11.2b, first time it has crossed $10b. Almost 50% higher than the 12-month average. Total bilateral goods trade also sets a record- around $15b for the month," Richard Rossow, Chair in US India Policy Studies at the Center for Strategic and International Studies, wrote on X.

In comparison, total goods trade between the two nations reached $129.2 billion in 2024, up from $124.1 billion in 2023. All figures are nominal and not seasonally adjusted.

India-US Trade talks

India, facing a suspended 26% reciprocal tariff, is engaged in productive talks with the US regarding a bilateral trade agreement. It is anticipated that India will be the first country to successfully negotiate a new trade agreement under President Donald Trump's updated trade policies.

At a recent media interaction at the White House, President Trump disclosed that India has agreed to eliminate tariffs on imports from the United States. This development comes amidst bilateral trade discussions between the two countries and is seen as a significant step, considering India's historically high tariff levels. 

“India has one of the highest tariffs in the world. We are not going to put up with that, they have agreed already to drop it, drop it to nothing. They have already agreed. They wouldn’t have done for anybody else, but me,” Trump stated.

According to a report by Bloomberg, India has put forward a proposal to remove tariffs on specific US imports such as steel, auto components, and pharmaceuticals. The zero-tariff offer would be reciprocated and limited to a predetermined amount of imports. This proposal entails allowing duty-free entry of certain industrial goods from the US, but only up to a specified quota. Any imports exceeding this limit would still be subject to standard duties.