India’s exports to the United States declined by 13 percent in February, reflecting softer demand and shifting global trade patterns, according to recent trade data. The slowdown comes at a time when India’s trade deficit with China has crossed the $100 billion mark, highlighting persistent imbalances in bilateral trade.
The fall in shipments to the United States, one of India’s largest export destinations, was driven by weaker demand for key products including engineering goods, textiles, and gems and jewellery. Industry analysts say global economic uncertainty and inventory adjustments by American buyers have contributed to the decline.
At the same time, India’s imports from China continue to remain strong, particularly in sectors such as electronics, machinery, chemicals, and active pharmaceutical ingredients. The steady inflow of these goods has widened the trade gap between the two countries, pushing the deficit past the $100 billion threshold.
Trade experts note that the imbalance underscores India’s continued dependence on Chinese manufacturing inputs for its domestic industries. While the government has launched several initiatives to boost local manufacturing and reduce import dependence, progress in narrowing the gap has been gradual.
Officials say efforts are underway to diversify export markets and strengthen domestic production capabilities in key sectors. Expanding trade partnerships and encouraging value-added exports are also seen as crucial steps to stabilise India’s trade balance in the coming years.