India’s Exports to US Up 16.9%, Imports Slide in May
India’s merchandise exports to the United States rose sharply in May, increasing by 16.9% year-on-year to $8.83 billion, while imports from the US declined by 5.8% to $3.62 billion. This dynamic helped narrow India’s overall trade deficit for the month.
India–US Trade
During April and May, India’s exports to America grew 21.8%, reaching $17.25 billion, while imports climbed 25.8% to $8.87 billion. This increase reflects resilient demand for Indian products such as chemicals, pharmaceuticals, and electronics, despite ongoing tariff pressures across sectors including steel, aluminium, and auto parts.
Trade Deficit Narrows
India’s total merchandise exports fell modestly by 2.2% to $38.73 billion in May compared to the previous year, while imports dropped 1.7% to $60.61 billion, bringing the trade deficit down to $21.9 billion, down from $26.4 billion in April.
Key Export Drivers
The export rebound was led by:
- Electronics: Surging over 47%, largely driven by mobile phone shipments.
- Chemicals & Pharmaceuticals: Growing 16% and 7%, respectively.
- Marine Products & Textiles: Enjoying increased global demand.
Strategic Outlook
The Commerce Ministry continues to pursue Free Trade Agreement talks, including discussions with the US on an interim trade deal. These initiatives aim to remove remaining trade barriers and promote sustained export growth, particularly in high-performance sectors like electronics and pharmaceuticals.
