Bilateral trade between India and the US has been steadily growing. In FY25, total trade between the two countries reached a record $132.2 billion, with India achieving a trade surplus of $40.8 billion with the US.
On the investment front, the US remains a key partner for India. From April 2000 to June 2025, a total FDI of Rs 5,41,654 crore came from the US, representing a 10% share and making it the third-largest investor in India. However, recent US tariffs on Indian goods may affect the trade balance and future strategy.
This infographic helps explain trade between India and the US, making it easier for investors to understand which sectors in India could be affected by tariffs.
Wrapping Up
The 2025 tariff imposition has emerged as the most significant challenge to India-US trade relations. A partnership once built on cooperation now shows signs of tension. Despite YoY growth in bilateral trade, these tensions are deepening.
The way forward depends on whether both countries resolve issues through dialogue. India may consider offering economic concessions to ease the situation, but a sustainable solution is only possible when geopolitical tensions are addressed directly.
India’s oil imports from Russia remain a critical factor. Unless resolved, tariffs risk becoming a permanent burden rather than a temporary measure. This is a turning point where the balance between trade and politics will ultimately be decided.
*The companies mentioned in the article are for information purposes only. This is not investment advice.
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