India’s Growing Share in U.S. Imports
India has made notable strides in its share of U.S. imports, with a rise from 2.9% to 3.1% in the first five months of 2025. This increase comes as Switzerland, the European Union, and Taiwan emerge as significant beneficiaries, while China, Mexico, and Canada experience declines. The shift highlights changing dynamics in international trade, particularly in sectors like electronics and textiles, where India is gaining ground.
India’s Growing Share in U.S. Imports
Recent data from the U.S. Census Bureau reveals that India’s share of imports in the United States has increased to 3.1% in 2025, up from 2.9% the previous year. This growth positions India favorably among other countries, with Switzerland seeing a 3.3 percentage point increase in its share. In contrast, China has faced a significant decline, losing 2.7 percentage points during the same period. The data indicates that while India is gaining traction, China’s dominance, particularly in advanced technology products, is waning.
Shifts in Key Product Segments
The U.S. market has witnessed a substantial shift in product segments, especially in electronics and textiles. China’s share of U.S. imports in advanced technology products has plummeted from 14.5% in 2024 to just 5.8% in 2025, marking an 8.7 percentage point drop. Meanwhile, Taiwan has seen its share rise from 9.2% to 15.8%, and Mexico has also benefited with a 2.3 percentage point increase to 14.7%. India’s share in advanced technology products has improved from 2.3% to 3.5%.
In the electronics sector, China’s share has halved to 11% between June 2024 and May 2025, while India’s share surged from 3.5% to 7.2%, driven primarily by mobile phones and solar cells. Vietnam and Mexico have also gained from this shift, indicating a broader trend of diversification in U.S. imports.
Textiles and Apparel Market Dynamics
The textiles market has similarly reflected these changes, with China’s share dropping from 27% in June 2024 to 14% by May 2025. India has capitalized on this decline, increasing its share from 9% to 12%. Vietnam has also seen a rise, capturing 18% of the market share, up from 14%. The competitive nature of the U.S. apparel market is evident, as even slight price changes can lead to shifts in sourcing. Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council, emphasized the importance of tariff reductions under the India-U.S. trade agreement to enhance India’s competitiveness in this sector.
Challenges and Future Outlook
Despite the gains in certain sectors, India has faced challenges in others, particularly in gems, jewelry, and chemicals, where its share of U.S. imports has declined. Government officials have noted that the 25% additional tariff on automobiles and components has adversely affected Indian exporters, leading to decreased demand for products like tractors and motorcycles. Colin Shah, Managing Director of Kama Jewelry, highlighted that while current stock levels have helped meet demand, clarity on tariffs is crucial for future orders. The hope remains that India and the U.S. can negotiate a favorable trade package, as demand from American consumers continues to be robust.
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