India’s goods exports to the United States rose by 14.5% in October, marking the first increase in five months. This growth came even though the US imposed high tariffs under President Donald Trump.
Why Exports Fell in September
In September, India’s exports to the US dropped sharply after the US introduced a 50% tariff, including a 25% duty linked to India’s Russian oil purchases. These tariffs became effective on 27 August.
What Led to the Rebound in October?
The recovery in October was supported by two major decisions:
- India increased its imports of US LPG.
- President Trump granted exemptions on several US farm goods from India’s reciprocal tariffs.
Both steps helped stabilize the trade flow and improve confidence between the two countries.
India–US Trade Deal: Negotiations Moving Forward
Talks on an India–US trade agreement are moving ahead, and several important elements are reportedly close to finalisation.
Commerce Minister Piyush Goyal said that the deal will be announced only when both sides agree on a fair, equitable and balanced framework. He stressed that India will not compromise on:
- Farmers’ interests
- Fishermen’s livelihoods
- Small industries and domestic sectors
He added that negotiations are detailed and must address all stakeholder concerns. According to him, the country will hear “good news” only when the agreement is balanced for both sides.
US Says Deal Is Close
Kevin Hassett from the US side stated that Washington is very close to a trade deal with India, and that all trade arrangements have already received the required exemptions.
Overall Exports Still Weak
Despite the growth in exports to the US, India’s overall goods exports fell by 11.8% year-on-year in October. Trade declined in 15 of India’s top 20 markets.
As part of its broader energy strategy, India has also agreed to source 10% of its annual LPG requirements from the United States.
Conclusion
The rise in exports to the US is a positive sign for India after months of tariff-related pressure. The momentum in trade talks suggests that both countries are working toward a stable and mutually beneficial agreement. A balanced deal could help bring long-term clarity to India–US economic relations.
