US Trade Deficit Shrinks in April; India Among Smaller Contributors to Trade Gap

Washington: The United States recorded a modest improvement in its trade balance in April, with exports growing faster than imports, while its trade deficit with India remained relatively small compared to several major Asian trading partners.

According to data released by the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, the overall U.S. goods and services trade deficit narrowed to $55.9 billion in April from a revised $56.6 billion in March.

U.S. exports rose by $8.3 billion to reach $327.1 billion during the month, while imports increased by $7.6 billion to $383 billion. The stronger export performance helped reduce the country's overall trade gap.

India's position in the trade data highlighted its comparatively modest role in the United States' bilateral trade imbalances. The U.S. goods trade deficit with India stood at $2.4 billion in April, significantly lower than deficits recorded with several other major manufacturing economies.

The United States reported goods trade deficits of $19.3 billion each with Taiwan and Vietnam, $14.8 billion with Mexico, $12 billion with China, $5.6 billion with Germany, and $4.7 billion with South Korea during the same period.

On a broader goods-and-services basis, available quarterly, the U.S. trade deficit with India reached $11.1 billion in the first quarter of 2026. This was considerably lower than the deficits recorded with Taiwan ($59.1 billion), Vietnam ($54.2 billion), Mexico ($43.1 billion), China ($30.4 billion), South Korea ($15.7 billion), and Germany ($14 billion).

The figures suggest that although India remains an important trade partner for the United States, it is not among the countries driving Washington's largest trade imbalances. In fact, the monthly U.S. trade deficit with India was roughly one-fifth of its deficit with China and substantially smaller than those with Taiwan and Vietnam.

The improvement in the overall U.S. trade balance was largely driven by stronger goods exports, which increased by $8.7 billion to $221.3 billion. Capital goods exports rose by $4 billion, including a significant increase in computer exports. Industrial supplies and materials also posted strong gains, supported by higher crude oil exports, while consumer goods exports continued to grow.

On the import side, goods imports climbed by $6.4 billion to $304.9 billion, led by increased purchases of computers, semiconductors, and telecommunications equipment. Services imports also rose during the month.

The report noted that the overall reduction in the trade deficit reflected a $2.4 billion decline in the goods deficit, partially offset by a smaller services surplus.

Year-to-date, the U.S. goods and services trade deficit has fallen by $213.5 billion, representing a decline of 49.1 percent compared with the same period last year.

Meanwhile, India and the United States continue to strengthen economic ties through discussions on a proposed bilateral trade agreement and expanded cooperation in sectors such as technology, supply chains, energy, defence, and advanced manufacturing. Trade remains a key pillar of the growing strategic partnership between the two countries.

WIth inputs from IANS