India-U.S. trade in context: How it compares with the EU, China and other key partners

With two-way trade already above $212 billion, the U.S. remains India’s largest single-country partner. However, India’s trade with the E.U bloc is bigger overall, while China remains a critical import partner, highlighting India’s diversified global trade footprint.

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India and the United States have announced a trade agreement under which Washington will reduce tariffs on

Indian goods to 18% from earlier elevated levels. The move is expected to improve pricing competitiveness for exporters and deepen economic ties between the two countries. 

While the announcement is significant, the India-U.S. relationship needs to be viewed in the context of India’s wider global trade network, where Europe, China and West Asia remain equally important.
India’s overall trade position

According to the Ministry of Commerce and Industry, India’s total trade in goods and services stood at approximately $1.63 trillion in FY25.

Break-up:

• Goods exports: $437 billion
• Services exports: $383.5 billion
• Goods imports: $720 billion
• Services imports: $195 billion
• Trade deficit: $94.26 billion

Global trade in goods and services is estimated at $32.2 trillion, as per the World Trade Organisation, placing India’s share at roughly 5%.

India–U.S. trade footprint

The U.S. is India’s largest single-country trading partner. Data from the United States Trade Representative shows:

• Total trade (goods + services): $212.3 billion
• Goods trade: $128.9 billion
• India’s goods exports to U.S.: $87.3 billion
• Goods imports from U.S.: $41.5 billion
• Services trade: $83.4 billion

The tariff cut is expected to support export-heavy sectors such as textiles, chemicals, engineering goods and seafood.

How the U.S. compares with other partners

Despite strong growth, the U.S. is not India’s largest trade corridor overall.
India’s trade with key partners:

• India-EU: $219.64 billion
• India-China: $128 billion
• India-UAE: $100.06 billion
• India-Japan: $25.17 billion
• India-UK: $23.13 billion

Trade with the European Union slightly exceeds the U.S., while China remains a major supplier of imports, particularly electronics, machinery and intermediates.

Global trade corridors for perspective

Major global trade routes remain significantly larger:

• U.S.-EU: $950 billion
• China-EU: $800 billion
• China-U.S.: $582 billion
• China-Japan: $291.6 billion

These figures show that India’s trade relationships, though expanding, are still smaller relative to the world’s largest corridors.

Why trade deals matter now

With rising protectionism and supply chain shifts, India is accelerating free trade agreements to secure market access and reduce tariff risks.

Recent agreements include deals with:

• United Arab Emirates
• Australia
• United Kingdom
• European Free Trade Association

The U.S. pact adds to this strategy, positioning India as a more reliable manufacturing and services hub.

The bottom line

The tariff rollback strengthens India-U.S. trade competitiveness and improves export visibility. However, India’s growth story remains diversified across multiple partners rather than dependent on any single market.

The U.S. is important, but Europe and Asia continue to shape India’s broader trade trajectory.