NewKerala.com

US Trade Deficit with India Hits $55 Billion as Imports Outpace Exports

The United States recorded a goods trade deficit of $54.91 billion with India over the past 12 months, placing India among Washington's top deficit partners. In February alone, the bilateral goods deficit was about $3.5 billion, with India accounting for 5.01% of the total US goods trade deficit. India supplied $101.97 billion in goods, including pharmaceuticals and engineering products, to the US market over the period. The broader US trade deficit rose to $57.35 billion in February as imports grew faster than exports, though longer-term trends show some annual easing.

Key Points: US-India Trade Deficit Reaches $54.91 Billion

  • $54.91B US-India goods deficit
  • India a top import source at $101.97B
  • US overall trade gap widened in February
  • Deficit driven by pharmaceuticals, engineering goods
2 min read

India among US's largest trade deficit partners with $54.91 billion in past 12 months

The US goods trade deficit with India was $54.91B over 12 months, with imports like pharmaceuticals driving the gap as the overall US deficit widened.

"India accounted for about 5.01 per cent of the total US goods trade deficit - Official Data"

Washington, April 3

The United States recorded a goods trade deficit of $54.91 billion with India over the past 12 months, placing it among Washington's top deficit partners even as the overall US trade gap widened in February, according to official data.

The monthly figures showed the US trade deficit rose to $57.35 billion in February, up $2.67 billion from January, though still 11 percent below the 12-month average.

The increase came as imports grew faster than exports. Total exports stood at $314.8 billion, while imports reached $372.1 billion during the month.

In goods trade, the US ran a deficit of $84.60 billion, while the services sector posted a surplus of $27.26 billion. The goods deficit widened from January, while the services surplus edged lower.

India featured among the notable US trade partners. In February alone, the US recorded a goods trade deficit of about $3.5 billion with India.

Over the 12-month period through February 2026, India accounted for about 5.01 per cent of the total US goods trade deficit, reflecting steady trade flows between the two countries.

India also ranked among the significant sources of US imports. Goods imports from India totalled $101.97 billion over the same period, underlining its role in supplying pharmaceuticals, engineering goods and other products to the American market.

At the same time, imports from India generated $12.34 billion in US customs duties, with an average applied tariff rate of 12.12 per cent.

The broader US trade picture continued to be shaped by larger imbalances with Mexico, Vietnam and China, which remained the top contributors to the goods trade deficit.

Exports during February rose on the back of higher shipments of industrial supplies and materials, including nonmonetary gold and natural gas. Services exports also increased modestly.

However, imports rose more sharply, driven by demand for capital goods, computers, semiconductors, crude oil and pharmaceutical preparations.

Among traded goods over the past year, civilian aircraft, pharmaceutical products and nonmonetary gold were the leading US exports. On the import side, pharmaceuticals, computers and passenger vehicles dominated.

Despite the monthly rise, longer-term trends suggest some easing in the trade imbalance. Year-to-date data showed the deficit has narrowed compared to the same period last year, with exports increasing and imports declining on an annual basis.

In February, the US collected $21.24 billion in import duties, about 13 per cent below the 12-month average. The average applied duty rate stood at 8.48 per cent.

- IANS

Share this article:

Reader Comments

P
Priya S
While the numbers look big, context is key. Our deficit is a fraction of the US deficit with China or Mexico. The article says India accounts for only about 5% of the total US goods trade gap. The focus should be on increasing our services exports and high-tech manufacturing to balance this further.
R
Rohit P
The average tariff of 12.12% on Indian goods is quite high. It's a barrier. We need to negotiate better trade terms. At the same time, we should also look at importing more high-value American technology and agricultural products that can benefit our economy. Win-win is possible.
S
Sarah B
As an American living in India, I see both sides. The US gets affordable, reliable pharmaceuticals and IT services. India gets access to a massive market and capital. The deficit number alone doesn't capture the full picture of this strategic partnership. The services surplus for the US is also a key part of the equation.
K
Karthik V
We should be proud that 'Make in India' is reaching global markets. But a respectful criticism: we need to move up the value chain. Dominating in generic pharma and engineering goods is good, but where are our passenger car exports to the US? We need to build global brands. 🇮🇳
M
Michael C
Interesting data. The US collected over $12 billion in duties from Indian imports. That's revenue for the US Treasury. The trade relationship is complex and deeply integrated. It's not a simple "win-lose" scenario. Both economies are intertwined in the global supply chain.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50