India selling more to US despite tariffs

India’s shipments to the United States are rising despite tariff-related disruptions. Simultaneously, exports to China are growing even faster, but the trade deficit with Beijing continues to widen.
The latest figures offer a clue. India’s merchandise exports to the US reached $50.81 billion during April-September 2026, up from $45.73 billion a year earlier. This is an increase of about 11.1%, according to the latest trade figures reported by the government.
China presents a different picture. India’s exports to the neighbouring country surged 40.7% to $19.26 billion during January-September 2026. But imports from China rose 23.3% to $125.19 billion. The result was a trade deficit of $105.93 billion, up 20.7% from a year earlier.
The rise in exports to the US is significant because Indian businesses have faced uncertainty over American trade policy. The first phase of an India-US trade deal is nearing completion, but negotiations have involved questions about tariff rates and whether Indian exporters will enjoy an advantage over competitors such as Vietnam, Bangladesh and Indonesia. 
According to a Reuters report, the proposed deal has reduced the announced tariff burden from the earlier 50% level to 18%, although finalisation remained pending. Now, the latest export numbers suggest that US demand for Indian goods has not disappeared despite tariffs. India’s overall merchandise exports rose 18.51% to $259.89 billion during April-September 2026-27, compared with $219.30 billion in the corresponding period a year earlier. This was faster than the 11.1% growth in exports to the US. 
Electronics, petroleum products, chemicals and engineering goods have helped drive the wider export expansion. Electronics exports alone rose 70.44% year on year to $5.31 billion in September, according to the Ministry of Commerce.  The China story is more complicated. India is exporting more to its neighbour, but it is importing far more. According to China’s General Administration of Customs, India’s exports to China reached $19.26 billion in January-September 2026. Imports from China, however, stood at $125.19 billion. The gap between the two was $105.93 billion.
The deficit is not new. India’s trade gap with China stood at $112.6 billion in 2025-26 as imports rose to $131.63 billion while exports reached $19.47 billion.