India’s shipments to the United States increased during the first half of FY27 despite steep tariffs, although September exports declined 12.58% year-on-year amid trade uncertainty.
Highlights
- India’s exports to the US rose 11.11% to $50.81 billion in April–September 2026.
- September exports to the US declined 12.58% to $5.42 billion.
- The US imposed 50% tariffs on Indian goods, effective from late August 2025.
- India’s imports from the US increased 25.98% to $32.32 billion during April–September.
- The US launched a Section 301 investigation into India’s trade policies.
India’s Exports to US Rise 11.11% to $50.81 Billion Despite 50% Tariffs
India’s merchandise exports to the United States increased 11.11% year-on-year to $50.81 billion during April–September 2026, despite steep American tariffs and continuing uncertainty surrounding bilateral trade relations.
The increase was supported by stronger shipments in the earlier months of the period, even as exports weakened sharply in September following the implementation of higher US duties on Indian goods.
According to the commerce ministry’s trade data cited in a Financial Express report, India’s exports to the US had reached $8.02 billion in July, representing growth of 48% year-on-year.
However, the momentum slowed as higher tariffs began affecting shipments.
September Exports Decline 12.58%
India’s exports to the US declined 12.58% year-on-year to $5.42 billion in September 2026.
The decline reflected the impact of the 50% tariffs imposed by Washington on Indian goods, which came into effect in late August 2025.
The latest figures indicate that while India’s exports recorded growth during the first half of the financial year, monthly shipments have come under pressure.
Exporters are now facing challenges related to pricing, competitiveness and uncertainty over future US trade policies.
Imports From US Jump Nearly 26%
While exports increased, India’s imports from the United States grew at a faster pace during the same period.
Imports rose 25.98% year-on-year to $32.32 billion during April–September 2026, compared with $18.49 billion in the corresponding period a year earlier, according to the report.
The increase narrowed India’s merchandise trade surplus with the US.
The figures highlight the changing trade relationship between the two countries as American trade restrictions continue to influence bilateral commerce.
US Trade Policies Create Fresh Uncertainty
The United States has launched a Section 301 investigation into India’s trade policies and those of other trading partners.
The investigation could lead to further trade restrictions if Washington determines that the policies under review are unfair or discriminatory.
Separately, US President Donald Trump signed the Sanctioning Russia and Iran Act on September 18, providing for tariffs of up to 100% on countries purchasing Russian oil or gas, subject to its provisions.
These developments have increased uncertainty for Indian exporters, particularly businesses dependent on the American market.
Exporters Face Challenging Outlook
The US remains one of India’s most important merchandise export destinations.
However, rising tariffs and uncertainty over American trade policy could affect future shipments.
Industry participants are closely watching the direction of bilateral trade negotiations and possible changes to tariff structures.
The stronger April–September export performance indicates that Indian shipments maintained momentum during the first half of FY27, but September’s decline suggests that the impact of higher tariffs could become more visible in the coming months.
