US elections 2024 outcome is set to reshape India trade ties

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Subscribe to enjoy similar stories. NEW DELHI : With Donald Trump, the Republican nominee and former US president, leading the US presidential race, India's trade ties with the country—one of the few with which India has a merchandise trade surplus—are likely set for a paradigm shift.

According to experts, the policies of both US presidential candidates impact South Asian countries' export sectors, regulatory alignment, and defence partnerships differently. While Donald Trump’s America First agenda may lead to higher tariffs on Indian goods, especially in key sectors like automobiles, wines, textiles, and pharmaceuticals, Kamala Harris's presidency may avoid escalating tariffs with allies like India and offer more predictability, benefiting Indian exports.

In value terms, India's US exports exceeded imports by $35.33 billion during 2023-24, against the overall trade deficit of $241.14 billion during the fiscal year. During 2023-24, India's merchandise exports to the US stood at $77.52 billion in value terms, down 1.31% year-on-year, while imports stood at $42.19 billion, down 17.04% on-year, according to data from the ministry of commerce and industry.

During the first half of the current fiscal, India's merchandise exports to the US stood at $40.33 billion in value terms, up 5.47% on-year, while imports stood at $22.31 billion, up 2.28% on-year. India had an overall $137.5 billion merchandise trade deficit in H1FY25.

Among India's top exports to the US are drug formulations, pharmaceuticals, telecom instruments, pearls, precious and semi-precious stones, petroleum products, gold, cotton, iron ore, and electric machinery. India's top imports from the US consist of crude oil, petroleum products, coal, ships and boats,