India’s trade surplus with the United States has dropped to its lowest level in three years as imports from the American market surged to a record high, narrowing the bilateral trade gap. The shift reflects stronger domestic demand for energy, technology products, machinery, and industrial inputs.
At the same time, higher exports to China helped cushion the impact of weaker shipments to Gulf markets, where regional economic uncertainty and logistics disruptions have weighed on trade flows.
The decline in surplus with the US comes despite continued strength in Indian exports such as pharmaceuticals, engineering goods, textiles, gems and jewellery, and information technology-linked services. However, faster growth in imports outpaced outbound shipments during the period.
Trade analysts said diversification of export destinations has helped India manage volatility in West Asia, with China emerging as an important balancing market for certain commodities, chemicals, and intermediate goods.
The latest figures highlight changing trade dynamics as India navigates shifting global demand patterns, geopolitical risks, and evolving supply chains. Economists noted that sustaining export momentum will depend on improved market access, logistics efficiency, and competitive manufacturing capacity.