India’s Exports to US Rise to $50.81 Billion in April–September 2026 Despite Tariff Disruptions

India’s merchandise exports to the United States increased to $50.81 billion during April–September 2026, registering an 11.1% growth compared with $45.73 billion during the corresponding period of the previous financial year. The increase comes despite tariff-related disruptions and uncertainties affecting international trade, highlighting the continued demand for Indian products in the American market.

According to trade data released by the Ministry of Commerce and Industry on October 15, 2026, the United States remained India’s largest merchandise export destination during the first half of the financial year 2026–27. The growth was supported by shipments of electronic goods, petroleum products, engineering goods, chemicals and agricultural products, demonstrating the increasing importance of India’s diversified manufacturing and export sectors.

The latest figures also coincide with continued negotiations between India and the United States on a proposed bilateral trade agreement. Both countries are working towards improving market access, addressing trade barriers and establishing a more predictable framework for bilateral commerce.

India’s Exports to US Register 11.1% Growth

India’s merchandise exports to the United States rose from $45.73 billion during April–September 2025 to $50.81 billion during April–September 2026, representing an increase of approximately $5.08 billion. The expansion demonstrates the resilience of bilateral merchandise trade despite changes in tariff structures and uncertainties surrounding international trade policies.

The United States continues to be an important market for Indian manufactured goods, industrial products and agricultural commodities. Strong demand from American businesses and consumers supports production across several Indian industries, including electronics, engineering, chemicals and petroleum refining. These sectors contribute to industrial output, employment generation and foreign exchange earnings.

India’s imports from the United States also increased during the period, rising by approximately 26% from $25.66 billion to $32.33 billion. Consequently, India’s merchandise trade surplus with the United States stood at approximately $18.48 billion, compared with $20.07 billion during the corresponding period of the previous year. The figures indicate expanding bilateral trade flows, with imports growing faster than exports during the six-month period.

Electronics, Engineering Goods and Chemicals Drive Export Growth

The Ministry of Commerce and Industry identified electronic goods, petroleum products, engineering goods, chemicals and agricultural products among the important contributors to India’s export growth. These sectors reflect the increasing diversity of India’s export basket and the expanding capabilities of domestic manufacturing industries.

Electronic goods have emerged as a significant component of India’s merchandise exports, supported by growing investments in electronics manufacturing, assembly operations and related supply chains. The expansion of domestic production capabilities has enabled Indian manufacturers to participate more extensively in international markets, including the United States.

Engineering goods represent another important category, encompassing a wide range of industrial products, machinery, equipment and manufactured components. Demand for these products supports India’s engineering industry and its network of large manufacturers, medium-sized enterprises and specialised component suppliers. Chemical products and petroleum-based exports also contribute significantly to India’s international trade, while agricultural exports provide market opportunities for producers and processing industries.

The latest national trade figures illustrate the strength of several manufacturing sectors. During September 2026, India’s electronic goods exports increased by 70.44% compared with September 2025, while engineering goods exports rose by 20.91%. Petroleum product exports grew by 31.90%, and organic and inorganic chemical exports registered an increase of 24.21%. These figures represent India’s exports to all international markets rather than shipments to the United States alone.

India–US Trade Agreement Negotiations Make Further Progress

Commerce Secretary Rajesh Agrawal stated that negotiations for the proposed India–US trade agreement were progressing in the right direction, with both countries working towards concluding the agreement at the earliest opportunity.

The negotiations seek to strengthen economic cooperation and improve conditions for bilateral trade. Market access, tariff arrangements and the competitiveness of exported products remain important considerations as India and the United States work towards a mutually beneficial trade framework.

For Indian exporters, greater predictability in tariff structures can support long-term commercial planning, investment decisions and supply-chain development. Stable market access is particularly important for manufacturing industries that depend on international contracts, specialised production arrangements and established distribution networks.

The proposed agreement also forms part of India’s broader efforts to expand international trade partnerships and strengthen its position in global manufacturing and supply chains. The United States represents a major destination for Indian merchandise exports, making bilateral trade arrangements particularly important for industries seeking to expand their international presence.

India’s Overall Merchandise Exports Reach $259.89 Billion

The increase in exports to the United States formed part of a broader expansion in India’s merchandise trade during the first half of the financial year.

According to the Ministry of Commerce and Industry, India’s total merchandise exports reached $259.89 billion during April–September 2026, compared with $219.30 billion during the corresponding period of 2025. This represented a growth of 18.51%, reflecting stronger export performance across several product categories and international markets.

Non-petroleum merchandise exports also registered healthy growth, increasing to $218.70 billion during April–September 2026 from $189.26 billion a year earlier. The 15.56% increase highlights the contribution of manufacturing and other non-petroleum sectors to India’s overall export performance.

When merchandise and services are considered together, India’s cumulative exports reached an estimated $476.20 billion during April–September 2026, compared with $418.31 billion during the same period of the previous financial year. This represented an estimated growth of 13.84%, demonstrating continued expansion in India’s international trade activities.

However, merchandise imports also increased during the period, reaching $437.53 billion compared with $376.17 billion a year earlier. The merchandise trade deficit consequently widened from $156.88 billion to $177.64 billion, indicating that import growth continues to influence India’s overall trade balance.

September 2026 Records Strong Growth in Merchandise Exports

India’s merchandise exports registered particularly strong growth during September 2026, reaching $44.40 billion compared with $36.08 billion in September 2025. The increase of approximately 23.1% reflected higher shipments across several important product categories.

Electronic goods exports rose from $3.11 billion to $5.31 billion during the month, while petroleum product exports increased from $4.71 billion to $6.22 billion. Engineering goods exports expanded from $10.06 billion to $12.17 billion, and exports of organic and inorganic chemicals increased from $2.37 billion to $2.94 billion.

The textile sector also contributed to the expansion, with exports of cotton yarn, fabrics, made-ups and handloom products increasing by 20.76% to $1.12 billion. The growth across these categories demonstrates the contribution of multiple industries to India’s merchandise export performance.

The expansion of electronics, engineering and chemical exports is particularly relevant to India’s efforts to strengthen domestic manufacturing capabilities and increase the international competitiveness of Indian products. Continued growth in these sectors supports industrial development, investment and employment opportunities across manufacturing supply chains.

Export Growth Strengthens India’s Position in Global Trade

The increase in exports to the United States reflects India’s growing participation in international manufacturing and commercial networks. American demand for Indian goods supports a wide range of industries, from electronics and industrial engineering to chemicals, petroleum products and agricultural commodities.

India’s manufacturing sector has been expanding its capabilities through investments in production facilities, technological modernisation and supply-chain development. Government initiatives aimed at encouraging domestic manufacturing and export competitiveness have also created opportunities for Indian businesses to strengthen their presence in international markets.

The performance of the electronics sector is particularly noteworthy because it reflects the increasing contribution of technology-intensive products to India’s merchandise exports. A stronger electronics manufacturing ecosystem can generate opportunities for component suppliers, precision engineering companies, logistics providers and other supporting industries.

At the same time, the expansion of bilateral imports demonstrates the interconnected nature of the India–US commercial relationship. Trade between the two economies includes manufactured products, industrial inputs, technology-related goods and other commodities that contribute to business activities in both countries.

India–US Trade Partnership Continues to Expand

India’s merchandise exports to the United States reaching $50.81 billion during the first half of 2026–27 represents an important development in bilateral economic relations. The 11.1% increase demonstrates the continued strength of American demand for Indian goods despite tariff-related challenges and uncertainties in global trade.

The broader growth in India’s merchandise exports, particularly in electronics, engineering goods, chemicals and petroleum products, also reflects the expanding capabilities of domestic industries. These developments strengthen India’s participation in international supply chains while supporting manufacturing investment and employment generation.

With bilateral trade negotiations progressing and Indian exporters continuing to expand their international presence, the India–US economic partnership remains an important component of India’s global trade strategy. The latest export performance highlights the potential for deeper commercial cooperation, greater industrial integration and sustained growth in India’s international trade.

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References

1. Ministry of Commerce and Industry, Government of India. India’s Foreign Trade: September 2026. Press Information Bureau, October 15, 2026.
   https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2323944&lang=1&reg=3
2. Akashvani News – News On AIR. India’s Merchandise Exports to US Rise to Around $51bn Despite Tariff Disruptions. October 15, 2026.
   https://newsonair.gov.in/indias-merchandise-exports-to-us-rise-to-around-51bn-despite-tariff-disruptions/
3. Ministry of Commerce and Industry, Government of India. Trade Data and Statistics.
   https://www.commerce.gov.in/
4. Department of Commerce, Government of India. Export Import Data Bank and Trade Statistics.
   https://tradestat.commerce.gov.in/

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