India's exports to US hit record high in March amid 90-day tariff pause

India's exports to the United States reached a record high of Rs. 94,898 crore (US$ 11.2 billion) in March, exceeding the Rs. 84,730 crore (US$ 10 billion) mark for the first time. This represents a nearly 50% increase over the 12-month average, according to United States Census Bureau data. The export surge contributed to an unprecedented total bilateral goods trade of Rs. 1,27,095 crore (US$ 15 billion) for the month. This significant rise in trade activity occurred during the 90-day tariff pause announced by US President Mr. Donald Trump as both nations continued to negotiate a trade agreement. In the Q1 FY25, India exported goods worth Rs. 2,34,702 crore (US$ 27.7 billion) to the US while importing Rs. 88,967 crore (US$ 10.5 billion), resulting in a US trade deficit with India of over Rs. 1,45,736 crore (US$ 17.2 billion). The US trade deficit with India is part of a broader trend, as the US experienced a record trade deficit of Rs. 11,90,457 crore (US$ 140.5 billion) in March, up from Rs. 10,43,874 crore (US$ 123.2 billion) in February. This increase was driven by firms rushing to stockpile imports before new tariff hikes took effect.
In 2024, India-US goods trade stood at Rs. 10,94,712 crore (US$ 129.2 billion), compared to Rs. 10,51,499 crore (US$ 124.1 billion) in 2023. The current surge in trade is part of a larger pattern of increased US imports globally as companies prepare for potential tariff increases. His announcement of sweeping tariff increases, including duties of up to 145% on Chinese imports, has led to reciprocal tariffs with most partners, including India, being temporarily suspended for 90 days to facilitate negotiations. India, which currently faces a suspended 26% reciprocal tariff, is actively discussing a bilateral trade agreement with the US. He recently disclosed that India has proposed zero tariffs on steel, auto components, and pharmaceuticals, up to specific import quotas, which could pave the way for a deal. India is expected to become the first nation to secure a new trade deal with the US following its new trade policy.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.