USA-India Trade Corridor — 2026
Bilateral trade architecture, top sectors, and key counterparty exposures.
The USA-India trade corridor totals over $200B annually in goods and services combined, making each country a top-five trade partner for the other. The composition is highly complementary: the US exports capital goods, energy commodities, defence equipment, and aerospace components, while India exports pharmaceuticals, IT services, gems and jewellery, and labour-intensive manufactured goods.
No comprehensive FTA exists. The relationship operates under WTO MFN rates with a layered set of bilateral measures: Section 301 tariffs (Trump-era, partly continued), Section 232 on steel and aluminium, Section 201 on solar, and the 2019 GSP withdrawal. A bilateral trade and investment framework agreement (TIFA) provides ongoing commercial dialogue.
Top sectors & sub-sectors
| Sector | Notes |
|---|---|
| US exports → India · Crude oil + LNG | India imports US crude + LNG; ~$10-15B annually |
| US exports → India · Aerospace + defence | Boeing, Lockheed, Northrop Grumman major suppliers |
| US exports → India · Machinery + semiconductors | Capital goods, chip-making equipment |
| US exports → India · Cotton + agri | Cotton, almonds, walnuts, pulses |
| India exports → US · Generic pharma | Top supplier · ANDA + USFDA pipeline |
| India exports → US · IT services | ~$60B+ annual; H-1B sensitive |
| India exports → US · Gems + jewellery | NY/LA hubs · Surat manufacturing |
| India exports → US · Textiles + apparel | Section 301 China tariffs = India tailwind |