US-India bilateral trade exceeded $120 billion in 2025, making the US one of India's largest trading partners. India's top exports to the US include pharmaceuticals, IT services, gems and jewellery, textiles, and engineering goods. You need an IEC, RCMC, and FDA registration (for food/pharma). The US Generalized System of Preferences (GSP) for India expired in 2019 and has not been renewed — all Indian goods now face MFN tariff rates. Anti-dumping duties apply to several Indian product categories. Despite tariff challenges, the US remains a high-margin market with strong demand for Indian manufactured goods.
US-India Trade: The Opportunity
The United States is India's single largest export destination by country, absorbing over $80 billion in Indian goods and services annually. Bilateral trade between the two nations crossed $120 billion in 2025, and the trajectory is upward. For Indian manufacturers and exporters, the American market offers scale, purchasing power, and premium pricing that few other markets can match.
Unlike the EU, which negotiates trade agreements as a bloc, the US operates bilateral trade policy. India and the US do not have a Free Trade Agreement, which means Indian goods face Most Favoured Nation (MFN) tariff rates under WTO rules. Despite this, Indian exporters have built deep footholds in pharmaceuticals, textiles, auto components, and IT hardware. For detailed bilateral trade data, see our US-India trade data dashboard.
The opportunity is real but different from exporting to Europe. US buyers demand rigorous quality standards, competitive pricing, and reliable delivery schedules. Regulatory compliance — especially FDA registration for food and pharmaceuticals — is non-negotiable. But for Indian businesses that meet these standards, the US market offers margins 15-30% higher than domestic sales.
Top Products India Exports to the US
India's export basket to the US is diversified, spanning manufacturing, agriculture, and value-added services. Here are the top product categories by export value:
- Pharmaceuticals & Generic Drugs — India supplies over 40% of generic drugs consumed in the US. This is India's strongest export category, valued at over $8 billion annually. FDA approval is mandatory.
- Gems, Jewellery & Diamonds — Polished diamonds and gold jewellery account for approximately $9 billion in exports. The US is the world's largest diamond consumer market.
- Textiles & Apparel — Cotton textiles, readymade garments, home furnishings, and technical textiles collectively exceed $7 billion. Indian handloom and sustainable textiles command premium pricing.
- Engineering Goods — Auto components, iron and steel products, industrial machinery, and electrical equipment total over $10 billion. The US automotive aftermarket is a key buyer of Indian auto parts.
- Petroleum Products — Refined petroleum products represent a significant share, though this is capital-intensive and dominated by large refiners.
- Agricultural Products — Spices, basmati rice, shrimp and seafood, cashew nuts, and organic foods. The US is India's largest market for shrimp exports, worth over $2.5 billion.
- Chemicals & Plastics — Organic chemicals, dyes, pigments, and plastic products serve American manufacturing and consumer goods industries.
- IT & Electronics Hardware — A growing category as India expands its electronics manufacturing ecosystem under PLI schemes.
Documentation Required
Exporting to the US requires both Indian export documentation and US-specific registrations. If you haven't started the Indian side yet, read our guide on how to export from India for the foundational steps. Here's the complete documentation checklist for US-bound exports:
| Document / Registration | Purpose | Where to Obtain |
|---|---|---|
| IEC (Importer-Exporter Code) | Mandatory for all Indian exporters | DGFT portal |
| RCMC | Required for claiming export incentives | Relevant Export Promotion Council |
| FDA Registration | Mandatory for food, drugs, medical devices, cosmetics | US FDA portal (FURLS) |
| USDA Phytosanitary Certificate | Required for plant-based agricultural exports | NPPO India / Plant Quarantine |
| ISF-10 Filing (Importer Security Filing) | US Customs requirement — your US buyer files this | US Customs and Border Protection |
| Commercial Invoice | Standard export invoice with HS codes | Prepared by exporter |
| Bill of Lading | Title document for ocean freight | Issued by shipping line |
| Packing List | Contents of each package/container | Prepared by exporter |
| Certificate of Origin | Proves Indian origin for customs clearance | Chamber of Commerce / FICCI |
| TSCA Compliance Certificate | Required for chemicals under Toxic Substances Control Act | Self-declaration or testing lab |
Scroll \u2192 for more
If you export food, beverages, dietary supplements, pharmaceuticals, or medical devices to the US, you must register your manufacturing facility with the US FDA. Food facilities must renew registration every two years (October-December of even years). Failure to register means your shipment will be detained at the US port. FDA registration is separate from product approval — some products also need pre-market approval or GRAS (Generally Recognized as Safe) status.
Key Regulations & Tariffs
Understanding US tariff policy is critical for pricing your products competitively. India lost GSP (Generalized System of Preferences) benefits in June 2019, which previously provided duty-free access for approximately 1,900 product categories. Since then, all Indian exports face MFN tariff rates under the US Harmonized Tariff Schedule (HTS).
| Product Category | Typical MFN Tariff Rate | Notes |
|---|---|---|
| Textiles & Apparel | 7-32% | Among the highest tariffs; varies by fibre and construction |
| Auto Components | 2.5-4% | Relatively low; competitive against other Asian suppliers |
| Pharmaceuticals (Generic) | 0-6.5% | Many generics enter duty-free; FDA approval is the real barrier |
| Gems & Jewellery | 0-6.5% | Cut and polished diamonds are duty-free |
| Agricultural Products | 0-25% | Varies widely; spices are generally low, dairy faces high tariffs |
| Engineering Goods | 0-8% | Most categories face moderate tariffs |
| Chemicals | 0-12.8% | Subject to TSCA compliance requirements |
| Shrimp & Seafood | 0-15% | Subject to FDA inspection and anti-dumping duty checks |
Scroll \u2192 for more
Beyond standard tariffs, Indian exporters must be aware of anti-dumping duties (ADD) and countervailing duties (CVD). The US has active anti-dumping orders on several Indian product categories including shrimp, certain steel products, polyester staple fibre, and some chemical compounds. These duties can add 5-100%+ to the landed cost, effectively shutting Indian suppliers out of those specific product sub-categories. Check the US International Trade Commission (USITC) database for active orders affecting your HS codes.
Section 301 tariffs (originally targeting China) do not directly apply to Indian goods, but the broader US trade policy landscape remains protectionist. Monitor US Trade Representative (USTR) announcements for any policy changes that could affect Indian exports.
Looking to grow your India-Europe trade?
TradeAventus connects verified buyers and suppliers across India and Europe. Free to join.
How to Find American Buyers
The US market is vast and fragmented. Unlike Europe, where trade is concentrated through a few major import hubs, American buyers range from large retail chains and distributors to small e-commerce brands sourcing directly. Here are the most effective channels for Indian exporters:
- US trade shows — Events like ASD Market Week (general merchandise), Natural Products Expo (food and wellness), MAGIC (apparel), and IMTS (manufacturing technology) attract thousands of buyers actively looking for new suppliers. Budget $5,000-15,000 for booth, travel, and samples.
- B2B trade platforms — Platforms like TradeAventus connect verified Indian manufacturers with international buyers. A well-maintained digital storefront with product specifications, certifications, and pricing generates inbound enquiries around the clock.
- Amazon Business / Wholesale — For consumer products, Amazon's B2B marketplace provides direct access to American small businesses. Requires FBA (Fulfilment by Amazon) or a US-based 3PL warehouse.
- Indian embassy commercial offices — The Embassy of India in Washington DC and consulates in New York, Chicago, Houston, San Francisco, and Atlanta maintain trade facilitation desks. They organise buyer-seller meets and can provide introductions.
- Industry associations — Join US industry associations relevant to your product. The National Association of Manufacturers (NAM), American Apparel & Footwear Association (AAFA), and sector-specific groups maintain member directories of potential buyers.
- LinkedIn direct outreach — Identify procurement managers at target companies. A specific, well-researched message with your pricing, MOQ, and certifications gets responses. Generic sales pitches do not.
India-EU vs India-US: Where Should You Focus?
This is the strategic question every Indian exporter must answer in 2026. Both markets are massive, but the trade dynamics have shifted significantly with the EU-India FTA coming into force.
| Factor | United States | European Union |
|---|---|---|
| Market Size | $26 trillion GDP, single country | $18 trillion GDP, 27 member states |
| Tariff Access | MFN rates (no FTA), GSP expired | Preferential rates under EU-India FTA (0% on 90%+ goods) |
| Regulatory Complexity | FDA, CPSC, EPA — single federal framework | CE, REACH, EU Food Safety — harmonised but complex |
| Language | English only | Multiple languages (though business is often in English) |
| Payment Terms | Net 30-60 typical | Net 60-90 typical |
| Logistics | 18-22 days ocean freight | 14-25 days ocean freight |
| Competition | Heavy from China, Vietnam, Mexico | Heavy from China, Turkey, Bangladesh |
| Margin Potential | High (premium pricing) | High (volume + FTA advantage) |
Scroll \u2192 for more
The honest answer: if you're starting fresh in 2026, the EU offers better structural advantages because of the FTA. Zero tariffs on 90%+ of goods is a game-changer that makes Indian products directly competitive with Chinese and Vietnamese alternatives that already benefit from their own EU trade agreements. The US market offers higher per-unit margins but faces tariff headwinds without GSP.
That said, the US and EU are not mutually exclusive. Many successful Indian exporters serve both markets simultaneously, adjusting their pricing and compliance strategies for each. If your product category faces low US tariffs (auto components, generics, diamonds), the US market can be highly profitable. If your product faces high US tariffs but benefits from EU-India FTA elimination (textiles, leather, engineering goods), prioritise Europe. For a deeper analysis, see our EU-India FTA guide.
Ready to connect with verified businesses?
Join businesses across India and Europe who are already trading smarter.