U.S. Goods Trade Deficit With India Stood At $4.1 Billion In May
Washington — The United States recorded a $4.1 billion goods trade deficit with India in May, according to official data released Tuesday, as the overall U.S. trade deficit widened sharply amid falling exports and rising imports.
The figures also highlighted India’s position in the broader Asian supply chain, with the U.S. trade gap with India remaining significantly smaller than those with several other major manufacturing hubs in the region.
Data from the U.S. Census Bureau and the Bureau of Economic Analysis showed that the overall U.S. goods and services trade deficit rose by $23 billion, or 42.2 percent, to $77.6 billion in May from a revised $54.6 billion in April. Exports fell by $10.5 billion to $317.7 billion, while imports increased by $12.5 billion to $395.3 billion.
Among major trading partners, the largest U.S. goods trade deficits were with Vietnam at $20.6 billion, Mexico at $20.1 billion, Taiwan at $19.4 billion, China at $14.5 billion, the European Union at $9.3 billion, Canada at $7 billion, Germany at $5.7 billion, Malaysia at $4.7 billion, South Korea at $4.4 billion and India at $4.1 billion.
The data underscored India’s growing role in the Asian manufacturing and supply chain ecosystem. While Vietnam, Taiwan and China remain much larger sources of the U.S. goods trade deficit, India continues to expand its presence as a key supplier to the American market, with a comparatively smaller trade imbalance than several major Asian export economies.
The report said the increase in the overall U.S. trade gap reflected a $23.6 billion rise in the goods deficit to $106.5 billion, partly offset by a $0.6 billion increase in the services surplus to $28.9 billion. Goods exports declined by $11.3 billion, mainly because of lower shipments of industrial supplies and materials, capital goods and consumer goods. Services exports rose by $0.8 billion.
Goods imports increased by $12.3 billion to $317 billion during the month. Consumer goods imports rose by $3.5 billion, led by a $1.9 billion increase in pharmaceutical preparations and a $1 billion rise in cell phones and other household goods. Industrial supplies, automotive vehicles and capital goods also recorded increases.
The report did not provide a country-wise breakdown for those product categories, but pharmaceuticals remain one of India’s largest merchandise exports to the United States.
The U.S. goods and services deficit declined by $203.9 billion, or 40.6 percent, from the same period in 2025. Exports increased by $164.7 billion, or 11.7 percent, while imports decreased by $39.2 billion, or 2.1 percent.
The report also showed that the average goods and services deficit over the three months ending in May increased by $7.5 billion to $62.9 billion. Average exports rose to $321.5 billion, while average imports increased to $384.5 billion.
India has emerged as one of the fastest-growing U.S. trading partners over the past decade, with bilateral trade expanding across pharmaceuticals, engineering goods, electronics, chemicals, textiles and gems and jewelry. The United States is India’s largest export market, while India has become an increasingly important destination for U.S. energy exports, aircraft, defense equipment and advanced technology. (Source: IANS)
