New Delhi: India’s merchandise exports to the United States rose sharply by 16.93% in May 2025, reaching USD 8.83 billion, according to data released by the Ministry of Commerce. On the other hand, imports from the US dipped by 5.76% during the same period, amounting to USD 3.62 billion. The positive trade balance with the US has contributed to a promising start to FY25 for India’s global trade outlook.
Over the first two months of the financial year—April and May—India’s exports to the US grew by an impressive 21.78%, totalling USD 17.25 billion. Imports from the US in that period increased by 25.8%, reaching USD 8.87 billion, reflecting steady demand for American goods despite a dip in May’s monthly figure.
Commenting on the implications of rising tariffs imposed by the US—particularly the 25% duties on steel, aluminium, and auto components—Special Secretary in the Department of Commerce, Rajesh Agrawal, noted that India’s exposure in these categories is relatively limited. “We don’t export significant volumes of steel and aluminium to the US. There is also a uniform tariff on auto components for all exporting countries, so we haven’t seen a major impact yet,” Agrawal explained. However, he cautioned that prolonged tariff regimes and selective exemptions to other countries could potentially affect Indian exporters over time.
The US remained India’s second-largest trading partner during April-May, with China holding the top spot. Notably, India’s exports to China jumped 25% in May to USD 1.64 billion and grew 18.75% in the April-May period to USD 3.04 billion. Imports from China surged 21.16% in May to USD 10.31 billion and by 24.23% in April-May to USD 20.22 billion—highlighting growing dependency on Chinese goods, particularly in electronics and machinery.
Trade data from China and India, released by China Customs and India’s Commerce Ministry respectively, indicate significant shifts in global trade patterns amid ongoing geopolitical tensions. Economic think tank Global Trade Research Initiative (GTRI) noted that the US-China trade war is reshaping global supply chains, with India emerging as a key alternative market for both exports and imports.
“India’s surge in electronics and machinery imports—much of it from China—alongside rising exports to the US, shows how global trade is adapting. But this also introduces new vulnerabilities for India, especially against a backdrop of Middle East tensions and rising protectionism,” said GTRI Founder Ajay Srivastava.
According to GTRI, India’s imports from China and Hong Kong combined increased 22.4%—from USD 9.8 billion to USD 12 billion. Two key import categories stood out: electronics, which rose 27.5% to USD 9.1 billion, and machinery and computers, which grew 22% to USD 5 billion.
While India recorded strong export growth to markets like China, Singapore, Germany, Australia, Belgium, South Korea, and Russia in May, outbound shipments declined to major partners including the UAE, the Netherlands, the UK, Bangladesh, Saudi Arabia, South Africa, Italy, France, Malaysia, and Brazil.
On the import side, India saw a drop in shipments from countries like Russia, Iraq, Saudi Arabia, Indonesia, and Qatar. However, imports rose from the UAE, Japan, South Korea, Singapore, and Germany.
The overall data signals a dynamic realignment in India’s foreign trade engagements, driven by external shocks, evolving supply chains, and shifting global alliances. As India’s exports to the US continue to rise and trade dependencies shift toward strategic diversification, the next few quarters will be critical in maintaining momentum while safeguarding against global volatility.
