India-US Trade Surplus Narrows 17% as Imports Surge Ahead of BTA Talks

According to Commerce Ministry data, India’s exports to the US increased marginally to $87.31 billion in FY26 from $86.51 billion a year earlier, registering growth of just 0.93%. In contrast, imports from the US surged 17.24% to $53.48 billion from $45.62 billion, pushing India’s trade surplus down 17.3% to $33.83 billion from $40.89 billion in FY25.      The widening import bill was driven primarily by higher purchases of US energy products. Imports of mineral fuels, crude oil and LNG rose to $17.32 billion in FY26 from $14.37 billion in the previous year. Other key import categories showing strong growth included electrical machinery and equipment ($5.56 billion), precious stones and metals ($6.85 billion), and aircraft and aircraft parts ($1.91 billion).

The trend has continued into FY27, with India’s exports to the US during April-May growing only 0.5% year-on-year to $17.29 billion, indicating that the trade surplus may continue to narrow unless export growth accelerates.      The latest figures come as Commerce and Industry Minister Piyush Goyal and US Trade Representative Jamieson Greer hold discussions in New Delhi to advance the proposed BTA framework. The agreement is expected to address tariffs, market access and trade barriers while helping both sides navigate recent changes in the US tariff regime.