India-US Trade: Exports Rise and Imports Dip
India’s Exports to the US Grow by 16.93% in May
India sent more goods to the United States in May. Exports grew by 16.93% compared to last year. They reached $8.83 billion. But, imports from the US dropped by 5.76% to $3.62 billion. The commerce ministry shared this data.
Growth Continues in April–May
The trend continued in April and May. Exports to the US went up by 21.78%. They reached $17.25 billion. Imports also rose by 25.8% to $8.87 billion in the same period.
The US is India’s Second-Largest Trading Partner
During April and May, the US became India’s second-largest trading partner. A PTI report confirmed this.
US Tariffs and Their Impact on Indian Exports
The US has high tariffs of 25% on products like steel, aluminium, and auto parts. But officials say these tariffs have not hurt India much yet.
Rajesh Agrawal, a top official in the Department of Commerce, talked about the impact. He said India does not export much steel and aluminium to the US. So, the effect has been small. Auto parts face the same duty in all countries. “We have not seen a big impact,” Agrawal added.
But he warned that if the tariffs stay for a long time or if some countries get exemptions, Indian exporters could face problems.
Export Growth to Other Key Markets
India also sent more goods to other key markets. Exports to China grew strongly:
- Up 25% in May to $1.64 billion
- Up 18.75% over April–May to $3.04 billion
Imports from China also rose:
- 21.16% in May to $10.31 billion
- 24.23% in the two-month period to $20.22 billion
India saw more export growth to countries like Singapore, Germany, Australia, Belgium, Korea, and Russia in May.
Decline in Exports to Several Major Destinations
But, exports fell to several other major destinations, including:
- UAE
- UK
- Netherlands
- Bangladesh
- Saudi Arabia
- France
- Brazil
Changes in India’s Imports
India bought less from Russia, Iraq, Saudi Arabia, Indonesia, and Qatar in May. But imports from the UAE, Japan, Korea, Singapore, and Germany went up.
