India-U.S. Trade Relations Explained: Key Insights in Infographics

Quick Summary

• U.S. president Donald Trump announced a 25% tariff on Indian imports, effective August 1, citing high tariffs and trade barriers by India.
• Key exemptions from the tariff include pharmaceuticals, electronics, ICT goods, and petroleum products.
• The announcement comes amidst criticism of India’s fossil fuel trade with Russia and its military imports from the country.
• India exported goods worth over $86 billion to the U.S.in 2024-25 while importing $45 billion in goods during the same period; exports consist of telecom equipment (63% sent to U.S.),drug formulations,textiles,iron/steel,etc., making up about 20% of India’s exports globally.
• Energy: India increased Russian energy imports significantly due to discounted rates despite Western sanctions post-Ukraine invasion; it accounted for over 20% of total russian energy exports by mid-2025.
• Military: About 40% of India’s defense purchases from Russia represented a sizable share despite statements suggesting a pivot away under ‘Make in India’; procurement decisions reportedly driven by strategic needs.

Indian Opinion Analysis

the announcement of import tariffs signals heightened economic tensions between two major global players-India and the United States. For India’s export-driven sectors like telecom equipment or textile industries heavily reliant on American markets (over 60%), this measure may impact profitability unless exemptions balance losses.The stated exclusions for key sectors like pharmaceuticals are positive but limited against broader increases.

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