India-US trade: India’s exports to US jump 23% in June as imports fall 10%; China trade also expands

India’s merchandise exports to the United States surged 23.53% to $8.3 billion in June, even as imports from the world’s largest economy fell 10.61% to about $4 billion, according to commerce ministry data released on Monday.In the first quarter of FY26 (April–June), exports to the US climbed 22.18% to $25.51 billion, while imports rose 11.68% to $12.86 billion. The US retained its position as India’s top trading partner during the period, PTI reported.The data comes as New Delhi and Washington hold their fifth round of talks for a proposed bilateral trade agreement, with an Indian delegation currently in the US capital.India’s trade with China also recorded an uptick. Exports to the neighbouring country China jumped 17.18% year-on-year to $1.38 billion in June and rose 17.87% to $4.4 billion during the April–June period. Imports from China grew 2.48% to $9.51 billion in June and 16.33% to $29.74 billion for the quarter, according to the report.Among other key markets, Indian exports posted growth to Singapore, Germany, France, Brazil, and South Korea in June. However, outbound shipments declined to several destinations including the UAE, the Netherlands, the UK, Bangladesh, Saudi Arabia, Australia, Nepal, South Africa, Italy, Belgium, and Malaysia.On the import side, India saw a fall in shipments from countries such as the UAE, Russia, Iraq, Germany, Malaysia, Switzerland, Australia, and Taiwan. Imports, however, increased from Saudi Arabia, Singapore, Korea, Japan, Hong Kong, and Thailand.Meanwhile, India’s merchandise exports held steady at $35.14 billion in June, almost unchanged from $35.16 billion a year ago, as global headwinds weighed on external demand. However, the trade deficit narrowed to a four-month low of $18.78 billion during the month, according to government data released on Tuesday.Imports declined 3.71% year-on-year to $53.92 billion in June, largely driven by a drop in crude oil and gold shipments. Crude imports fell 8.37% to $13.8 billion, while gold imports dropped 25.73% to $1.9 billion.Key sectors trendSeveral core export sectors saw contractions in June. Petroleum product exports fell sharply by 15.92% to $4.61 billion, while other labour-intensive or primary goods segments — including fabrics, gems and jewellery, leather, iron ore, oil seeds, cashew, spices, tobacco, and coffee — also recorded negative growth.In contrast, outbound shipments of engineering goods, ready-made garments, chemicals, marine products, tea, rice and pharmaceuticals registered positive growth during the month.Electronics exports continued to be a standout performer, surging 46.93% to $4.14 billion in June. For the April-June quarter, electronics shipments grew 47.11% to $12.4 billion.Q1 snapshot: Goods exports up 1.9%, imports rise 4.2%Cumulatively, in the first quarter of FY26 (April-June), goods exports grew 1.92% year-on-year to $112.17 billion, while imports rose 4.24% to $179.44 billion. The merchandise trade deficit widened to $67.26 billion from $62.10 billion in the same period last year.Commerce Secretary Sunil Barthwal said that India’s overall exports — including both goods and services — are estimated at $210 billion in Q1, marking a year-on-year increase of about 6%.“If the growth continues like this, then we are going to cross last year’s exports figures,” he said. India’s total exports (goods and services) in FY25 touched a record high of $825 billion, quoted PTI.Services exports show strong momentumAccording to the latest estimates, services exports stood at $32.84 billion in June, up from $28.67 billion in the same month last year. Services imports were estimated at $17.58 billion compared to $15.14 billion in June 2024.Federation of Indian Export Organisations (FIEO) President S C Ralhan said India must maintain a sharp, sector-specific focus to boost exports, particularly in services.“With India’s digital capabilities and skilled workforce, there is immense scope to boost services exports. Investment in digital infrastructure, talent development, and targeted international promotion will be critical to sustaining this upward trajectory,” Ralhan said.