New Delhi, Aug 27: India’s merchandise trade surplus with the United States declined sharply in 2025-26, reflecting the impact of higher trade barriers on exports and a rise in imports from the American market.
The trade surplus fell 28 per cent to $31.2 billion during the financial year, according to trade data reported on August 26.
The United States remains one of India’s most important trading partners, making developments in bilateral commerce significant for exporters across several sectors.
The decline in the surplus comes as Indian businesses face greater uncertainty over access to the US market. Export oriented industries have been closely monitoring tariff changes and their potential impact on pricing, competitiveness and order flows.
At the same time, stronger imports from the US have narrowed the gap further. Increased purchases of American goods contributed to the decline in India’s overall merchandise trade advantage.
Industry groups are expected to remain focused on negotiations and policy measures that could protect market access for Indian exporters.
The latest figures also underline the importance of diversifying export destinations and strengthening domestic manufacturing capabilities as global trade conditions become increasingly unpredictable.
For Indian companies dependent on overseas demand, changes in US trade policy could remain a key factor influencing business plans and investment decisions in the coming months.