“The U.S. is now our largest merchandise trading partner, and the point to be noted is that we have a trade surplus with the U.S.,” said Ajay Sahai, director-general of the Federation of Indian Export Organizations.
The USA surpassed China to become India’s top trading partner in the year ended March 2022, reflecting strengthening economic ties between the two countries. According to India’s commerce ministry, in 2021-22, bilateral trade between the United States and India stood at $119 billion as against $80.5 billion the previous year. The U.S. has consistently been India’s largest market for services exports.
Exports to the U.S. increased to $76 billion from $51.6 billion in the previous fiscal year, while imports rose to $43 billion as compared to about $29 billion in 2020-21. During 2021-22, India’s two-way commerce with China aggregated at $115.42 billion as compared to $86.4 billion in 2020-21, the data showed.
Commodities exported by India to the U.S. are precious and semi-precious stones, drugs and pharmaceuticals, petroleum products, cotton fabrics, garments, marine products, iron and steel products, electrical equipment and auto components.
Several factors such as pent-up demand for items such as jewelry and electronics, diversification of supply chains by companies, among others, have contributed to this accelerated trend.
India’s import basket from the U.S. primarily comprised of crude oil, which seized the largest share, along with other items like pearls, precious and semi-precious stones, petroleum products, coal, coke, organic chemicals, gold, paper and paper board.
Last updated: December 26th, 2025
