Washington — The U.S. trade deficit narrowed in April, helped by stronger export growth, while India continued to account for a relatively modest share of America’s bilateral trade gap compared with several larger manufacturing exporters.
New government data showed the U.S. goods and services deficit declined to $55.9 billion in April from a revised $56.6 billion in March. Exports climbed to $327.1 billion, an increase of $8.3 billion, while imports rose by $7.6 billion to $383 billion, according to figures released by the U.S. Census Bureau and the Bureau of Economic Analysis.
The numbers showed that India’s goods trade surplus with the United States remained limited compared with several other major trading partners. The U.S. goods deficit with India was $2.4 billion in April, far below the gaps with Taiwan and Vietnam, which were each $19.3 billion. The U.S. also posted larger goods deficits with Mexico at $14.8 billion, China at $12 billion, Germany at $5.6 billion and South Korea at $4.7 billion.
India’s April figure was closer to the U.S. trade gaps with France and Italy than to the much larger imbalances with major Asian exporters.
Quarterly data covering both goods and services also showed India well behind the largest contributors to the U.S. deficit. In the first quarter of 2026, the U.S. goods-and-services deficit with India totaled $11.1 billion. That compared with $59.1 billion for Taiwan, $54.2 billion for Vietnam, $43.1 billion for Mexico and $30.4 billion for China. South Korea and Germany also posted larger gaps, at $15.7 billion and $14 billion, respectively.
The data suggests India is an important U.S. trading partner but not one of the main drivers of America’s largest bilateral deficits. In April, the U.S. goods deficit with India was about one-fifth of the deficit with China and sharply below the gaps with Taiwan and Vietnam.
The overall trade improvement was driven mainly by goods exports, which rose by $8.7 billion to $221.3 billion. Capital goods exports increased by $4 billion, boosted by a $2.5 billion rise in computer shipments. Industrial supplies and materials were also stronger, rising by $2.5 billion as crude oil exports jumped by $6.4 billion. Consumer goods exports rose by $1.7 billion.
The services side was weaker. Services exports fell by $0.4 billion to $105.8 billion, with declines in travel, transport and maintenance and repair services.
Imports also increased during the month, particularly in capital goods. Goods imports rose by $6.4 billion to $304.9 billion, with capital goods up $7 billion. Computer imports increased by $2.2 billion, semiconductor imports rose by $1.7 billion and telecommunications equipment imports climbed by $1.6 billion. Services imports rose by $1.3 billion to $78 billion.
The goods deficit narrowed by $2.4 billion to $83.7 billion, while the services surplus declined by $1.7 billion to $27.8 billion. For the year to date, the overall U.S. goods and services deficit was down $213.5 billion, or 49.1%, from the same period in 2025.
The latest figures come as India and the United States continue efforts to strengthen trade and investment ties. The two countries have been discussing a proposed bilateral trade agreement and have also sought deeper cooperation in technology, supply chains, energy, advanced manufacturing, defense and critical technologies. (Source: IANS)
