India's export footprint in the United States is gaining momentum, with fresh data showing a steady rise in its share of U.S. imports across several critical sectors. The shift reflects both a recalibration of global trade flows and the strategic repositioning of Indian exporters in response to changing global supply chains.
According to official U.S. data up to May 2025, India’s overall share in American imports has increased from 2.9 percent in 2024 to 3.1 percent. The growth is more striking in sectors like advanced technology, electronics, textiles, and agricultural products, where India is progressively replacing traditional suppliers like China.
In the advanced technology segment, India’s share jumped from 2.3 percent to 3.5 percent, while China's share sharply declined from 14.5 percent to 5.8 percent. Similarly, in electronics, India nearly doubled its share from 3.5 percent to 7.2 percent, benefitting from U.S. efforts to diversify away from Chinese dominance in manufacturing. This category includes items such as smartphones and solar cells, where India has made notable inroads.
Textile exports from India to the U.S. have also risen significantly, with the share increasing from 9 percent to 12 percent. China’s share in this sector, on the other hand, dropped from 27 percent to 14 percent. In the farm and marine products category, India improved from 1.7 percent to 2.2 percent, while China saw its share reduced to 1.5 percent from 3.5 percent.
The trade performance in June 2025 further supports this upward trend. India’s goods exports to the U.S. increased by 23.5 percent to $8.3 billion, while imports from the U.S. decreased by 10.6 percent to $4 billion, narrowing the trade gap and indicating a more favorable trade balance for India.
On a quarterly basis, India’s merchandise exports for April to June 2025 stood at $112.17 billion, up 1.9 percent from the previous year. When including services, total exports reached $210.3 billion, reflecting a robust growth rate of nearly 6 percent.
Policy changes in the U.S., especially new tariffs and import duties targeting China and some other nations, have encouraged buyers to look for alternative sources. India, along with countries like Vietnam, Thailand, and Taiwan, has emerged as a strong alternative in the global supply chain, particularly in sectors vulnerable to geopolitical tensions.
However, the benefits are not uniform across all sectors. Indian chemical and steel exports to the U.S. continue to face higher duties, and challenges remain in gems and jewellery exports, which have not seen significant improvement.
Amid these developments, trade talks between India and the U.S. are progressing. Both nations recently concluded the fourth round of negotiations for an interim trade agreement, with hopes of finalizing a pact by the end of summer 2025. The agreement is expected to address tariffs, market access, and non-tariff barriers.
Energy trade is also becoming a focal point in the bilateral relationship. India is exploring a long-term LNG supply deal through GAIL with the Alaska LNG project, aiming to secure its energy needs while helping balance the trade relationship with the U.S. India has also increased its oil imports from the U.S. by more than 120 percent year-on-year.
India’s growing share in U.S. imports reflects not only its strengthening industrial and export capabilities but also a broader shift in global trade alliances. As negotiations continue and supply chains evolve, India’s position as a key trading partner to the United States is likely to strengthen further in the coming months.