For the fourth consecutive year, the United States has remained India’s largest trading partner in the fiscal year 2024-25, with trade between the two nations reaching $131.84 billion. This growth in economic ties highlights the expanding collaboration between India and the US, especially in industries such as pharmaceuticals, technology, energy, and diamonds.
India’s exports to the US saw an 11.6% increase, totaling $86.51 billion, compared to the previous year’s $77.52 billion. In contrast, imports from the US grew by 7.44% to $45.33 billion. As a result, India enjoyed a trade surplus of $41.18 billion, up from $35.32 billion the year before.
Among the major exports to the US in 2024-25, drug formulations and biologicals led at $8.1 billion, followed by telecom instruments and precious stones. Meanwhile, the US supplied India with crude oil, petroleum products, and other commodities. Both countries are currently negotiating a trade agreement aimed at boosting their bilateral trade to $500 billion by 2030.
Despite the strong performance with the US, India’s trade deficit with China has continued to widen. Bilateral trade with China reached $127.7 billion in 2024-25, up from $118.4 billion in the prior year. However, India’s exports to China dropped by 14.5% to $14.25 billion, while imports surged by 11.52% to $113.45 billion. This imbalance resulted in a widening trade deficit of approximately 17%, rising from $85.07 billion in 2023-24 to $99.2 billion in the latest fiscal year.
While China remains India’s second-largest trading partner, the growing trade deficit is a major concern for Indian policymakers. As India strengthens its economic relationships with nations like the US and the UAE, the widening deficit with China signals potential challenges in balancing trade.
