Corridor Overview
A→B Exports
USD 62B
B→A Exports
USD 66B
Trade Balance
India deficit
CAGR (3yr)
10%
Incoterm
FOB/CIF
Currency
USD / USD
India-USA is the world's largest bilateral services trade corridor. USD 128B total trade (2024) is dominated by IT services (USD 45B+), pharmaceuticals (USD 8B) and engineering goods. No FTA — all goods trade under MFN WTO tariffs. US GSP lapsed in 2019 removing USD 5.7B preferential access for Indi
Top Verticals — This Corridor
Live Corridor Intelligence · April 2026
Data last updated: April 2026
Bilateral Trade Volume
USD 128.0B
FTA Status
none
Sea Transit Time
25 days
Corridor Risks
No FTA — Indian goods face US MFN duties (0–35% depending on category)
High — no duty preference vs competitors with US FTAs (Mexico via USMCA, South Korea via KORUS)
Mitigation: Target sectors where US MFN duty is 0% (pharma APIs, most IT services) or where India's quality premium overrides cost
FDA/USDA regulatory compliance — highest regulatory bar in the world
High — FDA 483 observations, warning letters can shut export facilities
Mitigation: Invest in US-FDA readiness: quarterly internal GMP audits, mock inspections, CAPA management
FAQ — India-USA Trade Corridor
Q: Why does India not have an FTA with the USA?
Political economy: US-India FTA negotiations have stalled due to differences on digital trade (India data localisation), agricultural access (India insists on protection), and IP (pharma patent linkage). No near-term resolution. India-US TIFA (Trade and Investment Framework Agreement) is the active vehicle.
Q: How do Indian IT companies export services to the USA without an FTA?
IT services trade under WTO GATS Mode 1 (cross-border) does not require an FTA. H-1B visa for Mode 4 (movement of persons) is the key constraint. Indian IT firms have invested heavily in US local hiring to reduce Mode 4 dependence.
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