India’s US Trade Surplus Narrows in FY26 as Export Growth Shifts Toward China

New Delhi April 15 2026: India’s trade surplus with the United States has narrowed in FY26 even as global exports continue to grow, reflecting a broader realignment in global trade flows, according to recent trade data.

The latest figures show that while shipments to the US remain strong, export momentum is increasingly shifting toward other markets, particularly China, where demand for select Indian goods has surged. This diversification has contributed to a relative decline in India’s surplus with the US.

At the same time, India’s total merchandise exports have remained resilient, supported by steady global demand in sectors such as electronics, engineering goods, and pharmaceuticals. However, changing tariff structures, geopolitical tensions, and supply chain realignments have influenced trade balances across key partner countries.

Officials note that India’s exports to China have registered notable growth in FY26, helping offset slower or more volatile trends in Western markets. Meanwhile, imports from China continue to remain high, keeping overall trade imbalances with Beijing elevated.

Economists say the shifting trade pattern highlights India’s expanding integration with multiple global markets but also underscores the challenge of sustaining balanced trade surpluses with individual partners such as the United States.