How India–US Trade Is Shifting: State-Level Export Patterns, HS Codes, and Strategic Opportunities

Explore top US states exporting to India, India’s major exports to the US, HS-code trends, and strategic sector opportunities.

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Trade between India and the US continues to strengthen, with deepening linkages at both the federal and state levels.

The US remains India’s largest export destination, while India is now a top-10 trading partner for several American states. The bilateral trade basket reflects both traditional strengths, such as energy, gems, and pharmaceuticals, and fast-emerging sectors, including machinery, electrical equipment, clean energy, aerospace, and electronics manufacturing.

India’s imports from the US: Energy, technology, and capital goods lead

India’s imports from the US reached US$45.6 billion in FY 2024-25, with mineral fuels (HS 27) dominating the basket. Between April-August FY 2025-26, imports remained robust at US$21.6 billion, reflecting continued demand for energy, machinery, and capital goods.

Key highlights

• Energy imports (HS 27) exceeded US$14.3 billion and accounted for nearly one-third of total imports.
• US-origin crude oil, LNG, and petrochemicals continue to support India’s energy diversification goals.
• Machinery (HS 84) and electrical equipment (HS 85) collectively crossed US$7.8 billion, driven by India’s Production Linked Incentive (PLI) schemes in electronics, semiconductors, aerospace, and renewable energy systems.
• Precision instruments, aircraft parts, plastics, and chemicals highlight the US’s role as a technology and industrial supply partner.

Source: Department of Commerce, Ministry of Commerce and Industry, GoI

Interpreting the data

India’s import composition reflects a structural shift: from consumption-heavy purchases toward production-linked, high-value industrial inputs. This aligns with national priorities in advanced manufacturing, clean energy, electronics, aerospace, and healthcare technologies.

Also Read: Apple’s India Strategy: Balancing Local Manufacturing with Global Supply Chains

Top US states exporting to India: Energy and technology power the map

US exports to India are heavily concentrated among a few high-capacity states with deep industrial ecosystems and global logistics connectivity.

Top US states exporting to India (2024)

1. Texas
2. California
3. New York
4. Louisiana
5. Washington
6. Virginia
7. Nevada
8. Pennsylvania
9. Georgia
10. Illinois

State-wise export highlights

Texas – US$10.5 billion

Texas remains India’s largest US state trade partner, led by:

• Oil and gas
• Basic chemicals
• Petrochemical products
• Resins and synthetic materials
• Aerospace components

California – US$4.5 billion

California’s shipments reflect its technological edge:

• Fruits & tree nuts
• Semiconductors and electronics
• Medical instruments
• Miscellaneous manufactured goods

New York – US$3.7 billion

A major hub for:

• Gems & precious metals
• Processed metals
• High-value manufactured commodities
• Scrap and recycled materials

Louisiana – US$2.2 billion

Energy exports dominate, supported by:

• Gulf Coast refineries
• Petrochemical complexes
• LNG terminals

Washington & Virginia

Driven by:

• Aerospace
• Defense parts
• Naval equipment
• Industrial machinery

State–commodity breakdown (NAICS-4)

(Key states only – values in US$ million)

• Texas: Oil & gas (6,624), Basic chemicals (1,023), Petroleum products (436), Synthetic resins (417), Aerospace parts (318)
• California: Tree nuts (1,114), Manufactured goods (1,046), Medical instruments (325), Computer equipment (286), Scrap (194)
• New York: Manufactured goods (1,879), Nonferrous processing (845), Scrap (320), Used merchandise (78), Medical instruments (54)

Strategic viewpoint

State-level specialization highlights a new geography of India-US trade, where bilateral flows are tied to industrial clusters:

• Energy: Texas, Louisiana
• Technology & aerospace: California, Washington
• Metals, gems, & logistics: New York, New Jersey
• Chemical & manufacturing: Illinois, Pennsylvania

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From a business perspective, companies should view India as a growth market for US industrial exports, particularly in clean energy, precision engineering, defense, and medical devices. State-level trade offices are increasingly leveraging these sectoral strengths to establish direct business linkages with Indian firms.

Also Read: Top Manufacturing Clusters in India: A Sector-wise Breakdown

Source: International Trade Administration

India’s exports to the US: Technology, pharmaceuticals, and engineering rise

India’s exports to the US reached US$86.5 billion in FY 2024-25, reflecting a strong mix of traditional exports and higher-value engineering and technology-driven products.

Key export drivers

• Electrical machinery (HS 85): US$15.9 billion
• Gems & precious stones (HS 71): US$9.97 billion
• Pharmaceuticals (HS 30): US$9.78 billion
• Machinery (HS 84): US$6.69 billion
• Petroleum products (HS 27): US$4.2 billion

Source: Department of Commerce, Ministry of Commerce and Industry, GoI

Bright spots

• Strong performance in electronics & hardware signals India’s rising role in the global tech supply chain.
• Pharmaceutical exports highlight India’s position as a leading global generic medicines supplier.
• Textiles and apparel remain stable despite US supply chain shifts.

Top US states importing from India: Trade clusters expand inland

India’s export distribution across US states reveals a diverse and expanding footprint.

Top US states importing from India (2024)

1. New York
2. New Jersey
3. California
4. Texas
5. Tennessee
6. Illinois
7. Georgia
8. Pennsylvania
9. Florida
10. Kentucky

State-commodity highlights

• New York (US$14.1 billion) and New Jersey (US$10.1 billion) serve as primary gateways for Indian gems, jewelry, and pharmaceuticals.
• California (US$7.6 billion) and Texas (US$7.4 billion) are major hubs for machinery, technology hardware, and refined petroleum products.
• Tennessee (US$5.8 billion) and Illinois (US$5.1 billion) highlight India’s integration into American automotive and industrial supply chains.
• Other high-value destinations include Georgia, Pennsylvania, Florida, and Kentucky, reflecting expanding Indian participation in logistics, apparel, and food supply networks.

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These trade linkages indicate how India’s export growth to the US is no longer confined to coastal entry points; rather, it is expanding inland through technology corridors and manufacturing centers.

From a policy lens, this dispersion aligns with India’s strategic export diversification under initiatives such as Make in India 2.0, PLI, and India-US iCET (Initiative on Critical and Emerging Technologies), which foster deeper B2B and G2G engagement at the state level.

Source: International Trade Administration

Strategic outlook: State-level trade as a new growth channel

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The India–US economic partnership is expanding beyond federal engagement to state-led trade missions, B2B alliances, and technology partnerships.

Sub-national partnerships are becoming the next engine of bilateral trade, anchoring future opportunities across clean energy, AI and digital infrastructure, healthcare technology, and advanced manufacturing.

For US exporters

India offers sustained demand in:

• Energy & petrochemicals
• Advanced manufacturing inputs
• Machinery & industrial equipment
• Aerospace and defense components
• Medical devices & diagnostics

For Indian exporters

US states function as distinct, opportunity-rich submarkets:

• NY/NJ → Gems, pharma, chemicals
• CA/TX → Technology hardware, electronics
• TN/IL/GA → Automotive, industrial goods

Policy drivers to watch

• Make in India 2.0
• Production Linked Incentive (PLI) schemes
• India–US iCET (Initiative on Critical and Emerging Technologies)
• State-level MoUs, trade delegations, and investment offices

Conclusion

India–US trade in 2025 is increasingly defined by state-level dynamics, sectoral specialization, and high-value industrial linkages. The top trading states on both sides account for over two-thirds of flows, underscoring concentrated yet scalable trade relationships. As supply chains shift and both countries accelerate technology and manufacturing collaboration, bilateral trade is positioned to deepen across energy transition, digital innovation, aerospace, and healthcare.

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