August 2025 trade data clearly indicates that the United States is far more crucial for India than China. Despite a 50% tariff, the US remained India's largest export destination, with exports amounting to $6.86 billion. Conversely, India incurred the largest trade deficit of $9.69 billion with China, while enjoying a surplus of approximately $4 billion with the US.
New Delhi: Trade figures for August 2025, released by the Indian government, have shown that the United States has emerged as India's most vital trading partner. Despite the US administration imposing a 50% duty on Indian products, India exported $6.86 billion worth of goods to the US in August, a 7% increase year-on-year. In contrast, exports to China were only $1.21 billion, while imports stood at $10.9 billion, resulting in a significant loss for India. Conversely, imports from the US were a mere $3.6 billion, leading to a surplus of approximately $4 billion for India.
Highest Exports to the US in August
According to the Ministry of Commerce, India's exports to the US in August amounted to approximately $6.86 billion. This represented a decline of about 14% compared to July, when the figure was $8 billion. Despite this monthly dip, Indian exports to the US saw a year-on-year increase of 7.15%. This signifies that India sold more goods to the US in August compared to the same month last year.
When considering India's export markets, the US ranks highest, with China significantly trailing behind. In August, India exported only $1.21 billion worth of goods to China. This figure is considerably smaller than that of the US. Furthermore, the UAE and the Netherlands have also surpassed China in terms of export value to India. India exported $3.24 billion to the UAE and $1.83 billion to the Netherlands in August. Following China, the UK is next, with India sending $1.14 billion worth of goods to that country.
Strong Trade Despite US Tariffs
In August, the US administration increased tariffs on Indian products in two phases. First, a 25% tariff was imposed from August 7, followed by an additional 25% tariff from August 27, bringing the total to 50%. Despite these measures, the US remained India's largest export destination. This underscores the strength of the trade relationship between India and the US.
Largest Deficit with China
On the other hand, India's trade with China resulted in a deficit. In August, while India sold only $1.21 billion worth of goods to China, it purchased $10.9 billion worth of goods from China. This translates to a trade deficit of $9.69 billion with China, marking India's largest trade deficit.
Trade with Russia and Gulf Countries
India also purchased goods worth $4.83 billion from Russia in August. Imports from the UAE amounted to $4.66 billion. India's trade deficit with the UAE exceeded one billion dollars. Imports from Saudi Arabia stood at $2.52 billion.
Surplus with the US
India's trade balance with the United States was positive. In August, India exported $6.86 billion worth of goods to the US while importing only $3.6 billion. This means India gained approximately four billion dollars from its trade with the US. These figures clearly demonstrate that the US is not only India's largest export market but also its most profitable partner.
Crucial Partnership for India's Economic Health
These figures make it evident that the role of the United States is far more significant for India's economic well-being than that of China. While heavy imports from China have led to a substantial deficit for India, the US has provided a b trading base. Consequently, the official data bly suggests that the US will continue to be India's most important trading partner in the times to come.
