India’s Exports to the US Surge 23% in June Amid Strengthening Trade Relations

India’s trade dynamics with the United States have shown remarkable growth, with merchandise exports soaring by 23.53% to reach $8.3 billion in June. In contrast, imports from the U.S. experienced a decline of 10.61%, totaling approximately $4 billion. This data, released by the commerce ministry, highlights the ongoing strengthening of trade ties between the two nations, especially as discussions for a bilateral trade agreement continue in Washington.

Surge in Exports and Imports Overview

In the first quarter of FY26, which spans from April to June, India’s exports to the U.S. increased by 22.18%, amounting to $25.51 billion. During the same period, imports from the U.S. rose by 11.68%, totaling $12.86 billion. The United States has maintained its status as India’s largest trading partner, reflecting a robust economic relationship. This surge in trade comes at a time when an Indian delegation is engaged in the fifth round of negotiations for a proposed bilateral trade agreement in the U.S. capital, indicating a proactive approach to enhancing economic collaboration.

Trade with China and Other Markets

India’s trade with China also saw positive developments, with exports rising by 17.18% year-on-year to $1.38 billion in June. For the April to June quarter, exports to China increased by 17.87%, reaching $4.4 billion. Imports from China grew by 2.48% in June, totaling $9.51 billion, and rose by 16.33% for the quarter, amounting to $29.74 billion. Additionally, Indian exports to other key markets, including Singapore, Germany, France, Brazil, and South Korea, showed growth. However, there were declines in shipments to several countries, such as the UAE, the Netherlands, and the UK, among others.

Merchandise Trade and Economic Indicators

India’s overall merchandise exports remained stable at $35.14 billion in June, nearly unchanged from $35.16 billion in the same month last year. Despite this stability, the trade deficit narrowed to a four-month low of $18.78 billion, as imports fell by 3.71% year-on-year to $53.92 billion. This decline was primarily driven by reduced shipments of crude oil and gold, with crude imports decreasing by 8.37% to $13.8 billion and gold imports dropping by 25.73% to $1.9 billion. The data indicates a complex interplay of global economic factors affecting India’s trade landscape.

Sector-Specific Trends and Future Outlook

Several core export sectors faced challenges in June, with petroleum product exports declining by 15.92% to $4.61 billion. Other labor-intensive sectors, including textiles and gems, also reported negative growth. Conversely, sectors such as engineering goods, ready-made garments, and electronics saw positive trends. Notably, electronics exports surged by 46.93% to $4.14 billion in June, reflecting a growing demand for Indian electronics. In the first quarter of FY26, total goods exports increased by 1.92% year-on-year to $112.17 billion, while imports rose by 4.24% to $179.44 billion. Commerce Secretary Sunil Barthwal expressed optimism about the potential for continued growth in exports, particularly in services, which are projected to reach $210 billion in Q1, marking a year-on-year increase of about 6%.

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