International trade

The U.S.-India Trade Relationship

U.S. President Donald Trump’s past week of trade tariff announcements has shaken up the world economy, sending stock markets plummeting and global brokerages raising the odds of a global recession to 60 percent. India has been hit with U.S. tariffs of 26 percent, with the pharmaceuticals sector currently exempt. This won’t be for long though, as Trump announced on Tuesday that “major” duties on the sector will be revealed shortly, as he hopes to move operations to U.S. soil. Following the warning, global drugmakers’ stock prices plummeted, with Indian pharmaceutical stocks (.NIPHARM) closing nearly 2 percent lower, according to Reuters.

Observers have taken various stances on what this all means for the South Asia nation. On the one hand, it could cause significant damage to sectors such as India’s diamond and jewelry industry, which is one of the country’s biggest export commodities to the U.S. A more optimistic view from other analysts, however, highlights how India could see textiles, electronics and machinery opportunities arise as manufacturing may relocate there from other nations. While India’s additional tariffs are high, they are currently lower than those of regional neighbors such as China (54 percent), Vietnam (46 percent), Thailand (36 percent) and Bangladesh (37 percent).

According to UN Comtrade data published by the OEC, the U.S. imported $85.5 billion worth of Indian commodities in 2023, while India imported $41.4 billion worth of goods from the United States. Precious stones including diamonds and jewellery, as well as electronics and pharmaceutical products were the most valuable categories of Indian exports to the U.S. that year, together accounting for around 40 percent of total exports from India to the U.S. The three most valuable exports from the U.S. to India in 2023 were mineral fuels and oils ($13.6 billion), machinery and mechanical appliances ($5.32 billion) and precious stones, metals and pearls ($2.41 billion).

India has so far not announced reciprocal tariffs on the U.S.

Description

This chart shows the top traded exports from India to the United States in 2023 (in billion U.S. dollars),

Download Chart
Premium statistics
Value of India's exports to the U.S. FY 2024, by leading commodity
Premium statistics
Tariffs on India's exports to U.S. 2022, by commodity
Premium statistics
Tariffs on India's imports from U.S. in 2022, by commodity
Premium statistics
Export of goods from the United States 2023
Premium statistics
Import of goods into the United States 2023
Premium statistics
Monthly value of trade between Israel and the USA 2023-2024

Any more questions?

Get in touch with us quickly and easily.
We are happy to help!

Do you still have questions?

Feel free to contact us anytime using our contact form or visit our FAQ page.

Statista Content & Design

Need infographics, animated videos, presentations, data research or social media charts?

More Information