India-USA Trade Corridor — 2026
Bilateral trade architecture, top sectors, and key counterparty exposures.
India-USA bilateral trade crossed $200B in goods + services in recent years, making the United States India's largest trade partner. The corridor is structurally complementary: India exports labour-intensive and IP-rich goods (textiles, gems, pharma, IT services), while the US exports capital-intensive goods (machinery, oil & gas, aerospace, defence equipment, semiconductors).
Key tariff exposures include Section 301 (Trump-era tariffs, partly continued), Section 232 (steel + aluminium), Section 201 (solar), and GSP withdrawal in 2019. There is no comprehensive FTA between the two countries — the relationship is governed by WTO MFN rates plus bilateral commercial dialogue.
Top sectors & sub-sectors
| Sector | Notes |
|---|---|
| Pharmaceutical formulations | Major export · India is a top supplier of generics to the US market. ANDA filings, USFDA inspections govern. |
| IT services | India exports ~$60B+ annually in IT and BPO services. H-1B visa policy a structural variable. |
| Gems & jewellery | Cut + polished diamonds, gold jewellery. NY/LA hubs; Surat manufacturing. |
| Textiles & apparel | Cotton apparel, home textiles. Section 301 exposure on Chinese imports = India tailwind. |
| Defence equipment | India a major buyer of US arms (P-8I aircraft, Apache helicopters, drones). |
| Crude oil + LNG | India imports US crude + LNG; ~$10-15B annually. |
| Semiconductors | Tata + Micron India fabs being supplied by US toolmakers (Applied Materials, KLA). |
| Aerospace components | Boeing + Airbus sourcing from Indian suppliers; offset obligations. |