As Modi and Trump meet, a look at the numbers defining India-US trade
The challenge will be to balance Washington's concerns over the trade deficit with New Delhi.
As Indian Prime Minister Narendra Modi and US President Donald Trump are scheduled to meet on the sidelines of the G7 Summit, a trade deal is expected to be the top agenda item. The numbers show why.
The US has become an increasingly important market for Indian goods. India's exports to the US have grown from $10.9 billion in 2002–03 to $87.2 billion in 2025–26. While imports from the US have also increased, from $4.4 billion to $52.9 billion, but not at the same pace, leaving India with a merchandise trade surplus of more than $34 billion.
Looking at the commodity mix, the data reveals that a handful of sectors dominate these exports. Telecom equipment was the biggest contributor in 2025–26, accounting for nearly a quarter of all shipments to the American market. Pharmaceuticals follow at nearly 10 per cent. Petroleum products, iron and steel, electrical machinery, garments, jewellery, and marine products also feature prominently in India's export basket.
Energy is coming as one of the few areas where both India and the US have something to gain. As Washington looks for ways to reduce its trade deficit with India, New Delhi has steadily increased the purchases of American crude oil and petroleum products. The US share of India's overall petroleum imports has frequently exceeded 10 per cent in recent years, reaching 16 per cent in April 2026.
As Modi and Trump discuss the future of economic ties, the challenge will be to balance Washington's concerns over the trade deficit with New Delhi. The data suggests that while trade between the two countries has expanded dramatically over the past two decades, negotiations will increasingly focus on how that growth is distributed between the world's largest and fifth-largest economies.
At the same time, tariffs remain one of the biggest points of discussion in India-US trade talks. While the two sides are working towards a bilateral trade agreement, recent negotiations have been overshadowed by Washington's proposal to impose an additional 12.5 per cent tariff on imports from India linked to forced labour concerns.
India has pushed for preferential tariff treatment and assurances against future tariff actions, arguing that its exporters need competitive access to the American market.