India–U.S. trade in 2026: the numbers, the tariffs, and where Indian manufacturers can win

India’s exporters had a turbulent 2025. Tariffs on most Indian goods climbed as high as 50% at one point, then fell away in early 2026, and a new tariff regime took over in July. Yet the official numbers tell a clear story: American buyers bought significantly more from India, not less. For Indian manufacturers deciding whether to invest in the U.S. market, it helps to separate the headlines from the data.

The short version

• U.S. goods imports from India reached $103.8 billion in 2025, up 18.9% on 2024.
• Total U.S.–India trade in goods and services reached $239.6 billion in 2025, up 12.1%.
• Growth was concentrated: smartphone imports from India more than tripled, while gems and jewelry fell sharply.
• Since July 24, 2026, most Indian goods pay their normal U.S. duty plus 10% under a Section 301 action, with some exemptions. That action is being challenged in court.
• A U.S.–India interim trade agreement framework was announced in February 2026, but it had not been signed as of October 2026.

The numbers

U.S. Census Bureau figures for trade in goods with India, in U.S. dollars:

Services add substantially to the relationship. USTR estimates 2025 U.S. services exports to India at $42.9 billion and services imports from India at $47.6 billion. Both governments have also set a goal, announced in February 2025 and known as “Mission 500”, to more than double total bilateral trade to $500 billion by 2030.

What India sells to the United States

U.S.-reported import values for 2025 show where Indian suppliers are already established. The largest categories:

Two things stand out. First, the headline growth was driven largely by electronics, especially smartphones, which reflects large manufacturers shifting assembly to India. Second, beyond the headline categories there is a long tail of engineering and industrial products, including machinery, iron and steel articles, auto parts and chemicals, where many small and mid-sized Indian manufacturers compete.

Tariffs: what changed, and what applies now

Few trade relationships saw as many tariff changes in such a short period. The key milestones:

Where the openings are

Data shows where trade is flowing; it doesn’t pick winners for you. In our view, these are the situations where Indian manufacturers are best placed today:

• Buyers diversifying their supplier base. Many U.S. companies are qualifying additional sources to reduce dependence on a single country. Indian suppliers with documented quality systems are well placed to be part of that shortlist.
• Engineering and industrial categories with an existing foothold. Machinery, iron and steel articles, auto components and chemicals already reach U.S. buyers at scale, so channels and buyer familiarity exist.
• Products where tariffs are now comparable to competitors. With most Indian goods at normal duty plus 10% and goods from some competing countries at higher rates, the relative position has shifted for some products. Check your specific classification.
• Companies that can serve buyers locally. Responsiveness and accountability in the U.S. are often decisive when a buyer chooses between comparable suppliers.

What U.S. buyers will expect from you

• Same-day responses to questions, quotes and issues, in U.S. business hours
• Documented quality systems, test reports and relevant certifications
• Clear, all-in pricing with realistic lead times, and delivery that matches them
• Samples or trial orders before volume commitments
• A named, accountable contact, ideally someone they can meet in person

Next steps

If you’re an Indian manufacturer considering the U.S., start by testing your readiness and getting clear on which buyers to target. Our readiness assessment takes about three minutes, and our India to U.S. guide covers the corridor in more detail. When you’re ready, book a free consultation.

Figures are from official U.S. sources as published in October 2026 and are rounded. This article is general information, not legal, tax or customs advice.