India-US trade in context: How it compares with the EU, China and others

India and the US have announced a trade deal to ease tariffs. Here's how the India-US trade relationship compares with India's major partners and the world's largest trade corridors

India and the United States have agreed to a landmark trade deal under which Washington will slash tariffs on Indian goods to 18 per cent, down from an effective 50 per cent, US President Donald Trump announced after a call with Prime Minister Narendra Modi.

 

PM Modi welcomed the announcement, saying, “Delighted that ‘Made in India’ products will now have a reduced tariff of 18 per cent.” He added that cooperation between the world’s two largest democracies “unlocks immense opportunities for mutually beneficial growth.”

 

The deal involves India halting purchases of Russian crude and ramping up $500 billion worth of energy imports from the US, alongside commitments to reduce tariff and non-tariff barriers on American goods. The US, in turn, has rescinded a punitive 25 per cent duty imposed on India’s Russian oil purchases, which had stacked on top of a reciprocal tariff.

 

India’s position in global trade: Scale and share

According to the Ministry of Commerce & Industry, India’s total trade position has strengthened sharply with total trade (goods + services) of approximately $1.63 trillion in FY 2024-25, including:

• Goods exports: $437 billion
• Services exports: $383.5 billion
• Goods imports: $720 billion
• Services imports: $195 billion
• Trade deficit: $94.26 billion

Global trade (goods + services): approximately $32.2 trillion (2024), according to the World Trade Organization (WTO)

 

India’s share of global trade: ~5.1%

 

India accounts for roughly 1.8 per cent of global merchandise exports of $24.4 trillion and about 4.8 per cent of global services exports of $8 trillion, reflecting its growing role as a services hub.

India–US trade: How big is the relationship?

India–US trade has expanded rapidly over the past decade, positioning Washington as India’s largest single-country trading partner.

 

According to United States Trade Representative (USTR), the goods and services trade between India and US totalled an estimated $212.3 billion in 2024. The total goods trade (exports + imports) was an estimated $128.9 billion in 2024, with imports to India in at $41.5 billion and exports from India at $87.3 billion. The total services trade (exports + imports) totalled an estimated $83.4 billion in 2024, with imports at $41.8 billion and exports at $41.6 billion.

How India–US trade compares with India’s other key partners

India’s trade (goods+services) footprint is widening across key regions and blocs:

• India–EU: $219.64 billion (FY25)
• India–UAE: $100.06 billion (FY25)
• India–China: $128 billion (FY 25)
• India–Japan: $25.17 billion (FY25)
• India–UK: $23.13 billion (FY25)

Putting India’s trade in global context: Major trade corridors

For comparison among other major trade (goods) corridors:

• US–EU: $950 billion (2024)
• China–US: $582.0 billion (2024)
• China–Japan: $291.6 billion (2024)
• China–EU: $800 billion (2024)

Sources: India Ministry of Commerce & Industry, General Secretariat of the Council of the EU, United States Trade Representative, UN Comtrade database

India’s expanding free trade agreement network

Last week India also signed a free trade agreement (FTA) with European Union (EU) after years of negotiations and becamoe a part of the world’s largest trading bloc.

 

Other FTAs recently signed by India that are reshaping the country’s trade map include:

• Mauritius (2021)
• UAE (2022, implemented)
• Australia (2022, implemented)
• UK (signed July 2025)
• European Free Trade Association (EFTA) bloc (implemented October 2025)
• Oman (signed December 2025)
• New Zealand (talks concluded December 2025)

Why India is betting on trade deals amid global fragmentation

As global trade fragments under protectionist pressures, with increased tariffs, stricter import rules, signing deals with partners such as the US, EU, and UK, India is trying to secure predictable market access, lower tariff barriers and reduce the risk of sudden trade shocks by positioning itself as a trusted manufacturing and services hub.