Washington, July 8 (IANS) The United States recorded a $4.1 billion goods trade deficit with India in May, according to official data released on Tuesday, as America’s overall trade deficit widened sharply amid falling exports and rising imports.
The figures also highlighted India’s place in the broader Asian supply chain, with the US trade gap with India remaining significantly smaller than those with several other major manufacturing hubs in the region.
The latest data from the US Census Bureau and the Bureau of Economic Analysis showed the overall US goods and services trade deficit rose by $23 billion, or 42.2 per cent, 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, India was one of the countries with which the United States recorded a goods trade deficit. The largest deficits were with Vietnam ($20.6 billion), Mexico ($20.1 billion), Taiwan ($19.4 billion), China ($14.5 billion), the European Union ($9.3 billion), Canada ($7 billion), Germany ($5.7 billion), Malaysia ($4.7 billion), South Korea ($4.4 billion) and India ($4.1 billion).
The figures underscore India’s growing role in the Asian manufacturing and supply chain ecosystem. While Vietnam, Taiwan and China remain far larger sources of the US 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 of Asia’s major export economies.
The report said the increase in the overall US 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, while services exports rose by $0.8 billion.
Imports of goods 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. While the report does not provide a country-wise breakdown for these product categories, pharmaceuticals remain one of India’s largest merchandise exports to the United States.
The US goods and services deficit declined by $203.9 billion, or 40.6 per cent, from the same period in 2025. Exports increased by $164.7 billion, or 11.7 per cent, while imports decreased by $39.2 billion, or 2.1 per cent.
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 US trading partners over the past decade, with bilateral trade expanding across pharmaceuticals, engineering goods, electronics, chemicals, textiles and gems and jewellery. The United States is India’s largest export market, while India has become an increasingly important destination for US energy exports, aircraft, defence equipment and advanced technology.
–IANS
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