India–US Trade: Exports, Imports & Bilateral Economic Relations

Recent Trends & developments

• On June 4, 2026, India and the US concluded a round of discussions on the proposed India–US Bilateral Trade Agreement (BTA), covering trade in goods, customs, trade facilitation, non-tariff measures, and economic security. Both sides reaffirmed their commitment to concluding a mutually beneficial agreement to strengthen bilateral trade and economic cooperation.
• On January 13, 2026, India’s Foreign Minister Mr. Subrahmanyam Jaishankar held talks with U.S. Secretary of State Mr. Marco Rubio on trade, critical minerals and nuclear cooperation, with both sides reaffirming the aim to more than double bilateral trade to US$ 500 billion by 2030.
• On January 12, 2026, India and the US scheduled a trade discussion call for January 13, 2026, as announced by the newly appointed U.S. Ambassador to India, Mr. Sergio Gor; the engagement aims to address ongoing trade issues amid stalled negotiations and strengthen cooperation on trade, security, energy, technology and health.
• On June 26, 2025, Indian sources reported that India–U.S. trade talks faced roadblocks ahead of a tariff deadline, highlighting challenges in finalising a bilateral trade agreement due to unresolved issues on tariffs and market access.
• On May 27, 2025, the Indian Finance Ministry noted that a successful India-U.S. trade deal could energise Indian exports, underscoring the potential economic benefits of a comprehensive bilateral agreement.
• From April 21–24, 2025, Vice President of the United States Mr. J.D. Vance visited India, holding talks with Prime Minister Mr. Narendra Modi and other Indian leaders to discuss strengthening strategic ties, including trade, tariff issues and broader cooperation.
• During the April 21–24, 2025 visit, Vice President Mr. J.D. Vance’s engagements emphasised deepening the India-U.S. Comprehensive Global Strategic Partnership, with dialogues expected to focus on early finalisation of a trade pact and bilateral cooperation priorities.
• India and the United States are set to sign a new 10-year defence framework in 2025, aimed at enhancing strategic cooperation, defence industrial collaboration, and regional security in the Indo-Pacific. The agreement builds on the February 2025 joint statement by Prime Minister Mr. Narendra Modi and President of United States Mr. Donald Trump, focusing on co-production, technology sharing, and joint military exercises. Defence Minister of India Mr. Rajnath Singh and United States Defence Secretary Mr. Pete Hegseth have agreed to finalise the framework during their upcoming meeting later this year.
• In February 2025, the United States and India announced an expanded partnership in space innovation, focusing on joint research, commercial collaboration, and startup engagement. This initiative aims to strengthen bilateral cooperation in space technology and exploration.
• Prime Minister Mr. Narendra Modi met US President Mr. Joe Biden in Wilmington, Delaware, during the Quad Summit. Discussions focused on enhancing the India-US comprehensive global strategic partnership, covering bilateral cooperation, global and regional issues, and Indo-Pacific dynamics. Both leaders reflected on their recent visits and reaffirmed the partnership’s depth and significance, underpinned by shared democratic values and robust people-to-people ties.
• India and the USA commenced the 20th edition of their annual joint military exercise, YUDH ABHYAS-2024, on 9th September 2024 at the Mahajan Field Firing Ranges, Rajasthan. Running until 22nd September, this year's exercise involves 600 personnel from India's RAJPUT Regiment and the US Army's 1-24 Battalion, 11th Airborne Division. Focused on counter-terrorism in semi-desert conditions under Chapter VII of the United Nations Charter, the drill includes tactical simulations, joint planning, and real-world scenarios to enhance inter-operability and defence cooperation. This reflects deepening bilateral ties and growing operational complexity.
• The India-U.S. Senior Officials' Homeland Security met in New Delhi. Both the officials reviewed ongoing cooperation in counterterrorism, security, and other areas, and discussed steps to strengthen bilateral efforts to combat terrorism, drug trafficking, organized crime, and ensure transportation security.
• On February 15, 2024, India and the United States agreed to extend the political compromise outlined in the October 21 Joint Statement until June 30, 2024, as stated in the "Updated 21st October Joint Statement".
• During FY26, India received foreign direct investment amounting to US$ 11.17 billion. With 10% of the total FDI equity inflow, the US is the third biggest source.
• US Ambassador to India, Mr. Eric Garcetti called on Home Minister Amit Shah on July 11, 2023, discussed “building on the positive outcomes” of Prime Minister Mr. Narendra Modi’s visit to the US two weeks ago, the first such meeting between a US envoy and the Home Minister since 2015.
• US Secretary of Energy, Ms. Jennifer M. Granholm and Indian Minister of Petroleum and Natural Gas Mr. Hardeep Singh Puri held the third ministerial meeting of the US-India Strategic Clean Energy Partnership in July 2023, which was launched in September 2021.
• An US-India Defence Acceleration Ecosystem (INDUS-X) was set up “as a network of universities, startups, industry and think tanks to facilitate joint defense technology innovation, and co-production of advanced defence technology.” The US Department of Defense Space Force has signed its first International Cooperative Research and Development Agreement with two Indian startups.
• The Joint Statement issued by the US President Mr. Joe Biden and the Prime Minister of India Mr. Narendra Modi, after their meeting on June 22, 2023 spoke of the two countries being “among the closest partners in the world”, and of a “new level of trust and understanding.”
• The India-US Defence Industrial Cooperation Roadmap which concluded in May 2023, seeks to fast-track technology cooperation and co-production in areas of mutual interest. The India-US Defense Acceleration Ecosystem (INDUS X) – a network of universities, incubators, corporates, think tanks, and private investment stakeholders was launched in June 2023.
• The United States and India launched a new high-level partnership, the “US-India Climate and Clean Energy Agenda 2030 Partnership,” which envisages bilateral cooperation on strong actions in the current decade to meet the goals of the Paris Agreement.
• India and the United States have signed an agreement for cooperation in the development of Air-Launched Unmanned Aerial Vehicles (ALUAV), to expand bilateral defense and military cooperation.
• In 2022, India and the United States signed a bilateral space situational awareness arrangement, and this will support greater information sharing and cooperation in space.
• India is actively participating in the US-led Global Action Plan (GAP) framework launched in February 2022 to bridge policy gaps and end the COVID pandemic. Under GAP, India is leading in three areas, get shots in arms, supply chain resilience, and capacity building for healthcare workers.
• India-U.S. 2+2 Annual Ministerial Dialogue, led by External Affairs Minister and their respective counterparts, reviews bilateral ties in defense, strategic, and security domains as well as important regional and global issues. The fourth 2+2 Dialogue was held on April 11, 2022, in Washington D.C.
• India and the United States are set to sign a Memorandum of Understanding (MoU), which will clear the way for the ISRO's ‘NETRA’ in Bengaluru to start collaborating with the American Combined Space Operation Center (CSpOC) to protect satellites of both nations from natural and man-made threats. It will create a framework for India and the US to share data about space debris and other objects and the potential threat they could pose to the safety and security of the new and existing satellites and the other space assets of the two nations.
• Investment Incentive Agreement between the Ministry of Finance and the U.S. Development Finance Cooperation [DFC] was signed on May 23, 2022, to enable enhanced Investment support provided by US DFC in India.
• The 3rd Counter Narcotics Working Group (CNWG) meeting between India and US was held in New Delhi on July 7, 2022. Indian delegation was led by Director General, Narcotics Control Bureau. An Amended Letter of Agreement (ALOA) for cooperation in drug-related matters was signed.
• Prime Minister Mr. Narendra Modi made his first State Visit to the US from 21-23 June 2023 at the invitation of President of the USA, H.E. Mr. Joseph R. Biden. In addition to a bilateral meeting with President Biden, he addressed a Joint Meeting of US’ Congress and interacted with business and thought leaders.
• President of the USA, H.E. Mr. Joseph R. Biden visited New Delhi from 8-10 September 2023 to attend G-20 Leaders’ Summit. President Biden and PM Modi had a bilateral meeting and co-hosted a group of G20 leaders to accelerate investments in high-quality infrastructure projects and development of 2 economic corridors through the India Middle East Europe Economic Connectivity Corridor and the Partnership for Global Infrastructure and Investment (PGI).
• An Investment Incentive Agreement between our Ministry of Finance and U.S. International Development Finance Cooperation [DFC] was signed in 2022 to enable equity investment, co-insurance, grants, feasibility studies, and technical assistance. As of March 2023, DFC’s India portfolio stood at more than US$ 3.1 billion across 100+ projects.

Conclusion

India–U.S. relations remain resilient and forward-looking, underpinned by a comprehensive global strategic partnership. Despite ongoing trade negotiations and tariff-related challenges, both countries continue to engage closely to advance cooperation in trade, defence, technology, energy and the Indo-Pacific. Sustained high-level dialogue and strong economic complementarities signal a shared commitment to strengthening bilateral ties and achieving long-term strategic and commercial objectives.