Commerce ministry data show exports to both key partners climbing sharply even as tariff-related tensions with Washington persist.
India's merchandise exports to the United States and China surged in August 2026, provisional commerce ministry data released on September 15, 2026 showed, contributing to the country's fastest overall export growth in roughly a decade and a narrower trade deficit. Total merchandise exports jumped 26.12% year-on-year to $43.81 billion, while imports rose 14.1% to $70.67 billion, according to the ministry.
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Sharp Gains in Bilateral Trade
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Exports to the US rose 21.83% year-on-year to $8.4 billion in August, while imports from the US jumped 65.78% to $5.97 billion, the data showed. Exports to China rose an even steeper 52.35% to about $1.8-1.9 billion, even as imports from China climbed 17% to $12.77 billion. Over the wider April-August 2026-27 period, exports to the US grew 6.17% to $42.79 billion, while exports to China surged 38.71% to $9.64 billion, according to figures cited by the commerce ministry and reported by ANI. The US remained India's largest export destination for the period, ahead of the UAE and China, Mint reported, citing the same government data.
The overall merchandise trade deficit narrowed to its lowest level in five months, a trend the ministry and Mint attributed partly to lower gold imports alongside strong export performance. Exports to the European Union rose 3.84% to $27.78 billion and shipments to Japan increased about 43% to $3.43 billion during April-August, according to ANI, indicating broader diversification beyond the US and China.
Tariff Backdrop and Trade Talks
The August rebound follows a period of strain in India-US trade ties. The Times of India reported in October 2025 that exports to the US had fallen nearly 12% in September 2025 amid a 50% US tariff on certain Indian goods. The latest data indicate exports to the US have since recovered and grown again despite those tariff measures remaining a factor, according to the Times of India's September 2026 report, which also noted that India and the US are currently negotiating a trade pact. Key export sectors historically driving trade with the US and China include engineering goods, electronics, pharmaceuticals, gems and jewellery, and textiles, according to government trade data. On the import side, electronics and crude oil purchases rose, the ministry said.
