• Source:JND
HighLights
  1. US-India trade reached USD 149.4 billion in 2025. 
  2. Both countries are still negotiating a long-term trade deal.
  3. US-India aim to expand trade cooperation while addressing tariff disputes.

US Secretary of State Marco Rubio arrived in India on Saturday for a 4-day visit aimed at resetting bilateral relations and strengthening the Quad grouping. His visit comes at a time when India and the United States are trying to adjust their priorities and strengthen their relationship, especially in areas like trade, energy, defence, and technology.

PM Modi Welcomes Rubio

Welcoming Rubio to India, Prime Minister Narendra Modi said he was pleased to receive him and noted the continued progress in the India-US Comprehensive Global Strategic Partnership, signalling continued progress in bilateral ties. He wrote on X, "Happy to receive the US Secretary of State, Mr. Marco Rubio. We discussed sustained progress in the India-US Comprehensive Global Strategic Partnership and issues related to regional and global peace and security. India and the United States will continue to work closely for the global good."

India-US Ties

The two countries are specifically working to strengthen their trade relations under President Donald Trump’s second term. However, the efforts have been affected by tariff disputes and ongoing negotiations. In 2025, the US had imposed tariffs as high as 50 per cent on Indian goods, which created tensions between the two countries. It was later reduced to around 18 per cent, although a final long-term trade agreement is still not reached.

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What Do The Trade Numbers Tell?

According to the Ministry of Commerce and Industry release, India’s total exports (merchandise and services) during April-December 2025 are estimated at USD 634.26 billion, compared to USD 607.93 billion in the same period of 2024, showing a growth of 4.33 per cent. During the same period, merchandise exports stood at USD 330.29 billion, up from USD 322.41 billion last year, registering a growth of 2.44 per cent. Non-petroleum exports also increased by 5.51 per cent, reaching USD 288.16 billion compared to USD 273.12 billion in 2024.

On the trade destination side, India’s exports showed strong growth to several countries. For April-December 2025, the US recorded a growth of 9.75 per cent, while exports to China increased by 36.68 per cent, Spain by 53.33 per cent, and Hong Kong by 25.75 per cent. On the import side, India saw increased imports from key partners including China, the US, Hong Kong, the UAE, and Ireland.

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India-US Trade Volume

According to the United States Trade Representative (USTR), total US goods trade with India reached USD 149.4 billion in 2025. Of this, US exports to India stood at USD 45.6 billion, while imports from India were significantly higher at USD 103.8 billion, leading to a US trade deficit of USD 58.2 billion, which increased by 27.1 per cent compared to 2024. This simply means the US is buying more from India than it is selling to India. The gap has further become an important issue in trade talks as it remains a central concern for US policymakers.

Multiple reports suggest that tariffs have also played a big role in changing trade flows. In 2025, the US had imposed high tariffs on some Indian goods. These changes affected different sectors like textiles, electronics, and pharmaceuticals. Despite trade tensions, India’s exports to the US have continued to grow in value across categories, especially electronics and pharmaceuticals.

Mission 500 In Focus

Moreover, India and the US are planning to increase their total trade to USD 500 billion by 2030 under a plan called “Mission 500.” This means that economic benchmarks like trade volume, tariff rates, and sector-wise export growth will play a significant role in finalising trade deals.

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