New Delhi

India's trade surplus with the United States narrowed in FY 2025-26, amid a decline in export momentum following tariff measures imposed by US President Donald Trump, even as imports from the US rose significantly.

According to data released by the commerce ministry, India's exports to the US stood at USD 87.31 billion during April 2025-March 2026, registering only a marginal rise from USD 86.51 billion in the previous financial year. However, imports from the US increased sharply to USD 52.90 billion from USD 45.63 billion.

Consequently, India's trade surplus with the US declined to USD 34.41 billion in FY26, down from USD 40.88 billion in FY25.

However, US continued to remain India's top export destination during the year. Other key export markets included the UAE, China, the Netherlands, the UK, Singapore, Germany, Bangladesh, Saudi Arabia and Hong Kong.

Exports to China also recorded a notable surge during the year as exports in FY26 surged to USD 19.48 billion from USD 14.25 billion in FY24-25, with China emerging as the fastest-growing export destination among the top markets, registering a growth of 36.7 per cent. This reflects strengthening trade engagement with China. However, the imports are also high as it surged to USD 131.63 billion in FY26 which is a sharp surge from 113.45 in FY25.

Exports to the UAE also rose to USD 37.37 billion in 2025-26 from USD 36.64 billion in the previous year. However, exports to some European markets such as the Netherlands and the UK saw moderation during the period.

On the import side, China continued to be India's largest import source, followed by the UAE, Russia and the US. Imports from China remained significantly higher compared to other trading partners, underscoring India's dependence on Chinese goods across sectors.

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Commerce Secretary Rajesh Agrawal on export and Import decline in March 2026 said, "One of the key reasons we don't need to find reasons also here has been the challenges on trade front, due to Middle East crisis, our exports to Middle East in the month of March has dipped by USD 3.5 bn. Our exports to Middle East in the month of March has gone down to by 3.5 bn. In percentage term It has been a decline of 57.95 per cent. There has been a decline of import also. The import decline from Middle East is 51.6 per cent which is around USD 8.7 billion".

Overall, the data indicates that while India's exports to key markets such as the US and China have increased, rising imports--particularly from the US--have impacted the trade balance, leading to a decline in surplus with one of its largest trading partners.