Exporting to India: What You Need to Know

Editor’s Note (July 2026): This article has been updated to reflect recent tariff developments and current trade policy considerations for U.S. exporters shipping to India.

Looking to break into one of the world’s fastest-growing economies? Then look toward India. That’s right—as the country with the largest population (more than 1.47 billion as of mid-2026), India is expected to become the third-largest economy by 2030. So what does the booming growth of this nation mean for its economy, and for exporters who may want to enter it?

In this article, I’ll look at the history of U.S. trade with India; the process of exporting to India, including documentation and compliance requirements; and the benefits and considerations for U.S. companies looking to break into the Indian market.

Trade and Exporting to India

The United States and India maintain a rapidly expanding trade relationship. According to the Census Bureau, U.S. goods trade with India totaled about $149.4 billion in 2025, with $45.6 billion in U.S. exports to India and $103.8 billion in imports from India. This resulted in a U.S. goods trade deficit of $58.2 billion, which increased significantly from the previous year—for context, U.S. imports from India totaled $129 billion in 2024, compared with $83.4 billion in U.S. exports, highlighting the growing trade imbalance between the two countries.

2025-2026 U.S.–India Tariff Developments

In 2025, the Trump administration imposed tariffs of up to 50% on certain Indian imports, citing geopolitical tensions and trade imbalances. These tariffs targeted products such as textiles, gems and jewelry, leather goods, and automobiles.

The measures significantly disrupted bilateral trade, contributing to sharp declines in some Indian exports to the U.S. However, in early 2026, the two countries reached a framework for an interim trade agreement aimed at easing tensions. Under the agreement, tariffs on many Indian exports were reduced to about 18%, and India agreed to open its market to additional U.S. industrial and agricultural goods.

Exporting to India: The Challenges

U.S. exporters must be aware of certain barriers when exporting to India. But with careful planning and assistance from agencies like the U.S. Commercial Service, exporters of all sizes can absolutely be successful in the Indian market. According to the India Country Commercial Guide, challenges include:

High Tariffs and Protectionist Policies

U.S. exporters and investors often encounter non-transparent or unpredictable regulatory and tariff policies. Likewise, U.S. goods and services in some sectors have limited access to the market. India has the highest average applied tariff of any G20 country, and some of the highest bound tariff rates among WTO members.

Price Sensitivity

Indian companies and consumers are extremely price sensitive. U.S. companies must evaluate whether they can sell at prices that Indians are willing to pay and may need to adjust their sales models accordingly. For example, some companies sell products in smaller sizes or with fewer features to reflect price sensitivities of Indian consumers.

Infrastructure

India has significant infrastructure development needs, and improvements in this sector are vital to the country’s economic growth. India’s congested road transportation infrastructure; inordinate delays in railway freight movement; inefficient and long turnaround time at ports; and a fast-growing but highly concentrated airport sector all contribute to significant capacity constraints that, if not addressed, may stymie economic growth.

Infrastructure projects in India often suffer from delays in completion, mainly due to an inadequate regulatory framework and inefficiency in the project approval process. India has ambitious infrastructure development plans, notably in airports and inland waterways as alternative means of transport to traditional road and rail, as well as in intermodal logistics to focus on improving first and last mile connectivity. India has devoted significant portions of its recent annual budgets to infrastructure development and plans to execute these initiatives largely through a public-private partnership model. However, timely execution of projects within allocated budgets remains a challenge, even when funding is available.

Power of States

As a federal system, power and decision-making are decentralized in India, with differences at the state level in political leadership, quality of governance, regulations, taxation, and labor relations. Indian states generally hold greater power than their U.S. counterparts. U.S. companies face varying business and economic conditions across India’s 28 states and eight union territories and should factor these variations into their national business strategies. The current government has promoted the idea of “cooperative, competitive federalism,” encouraging states to compete against each other to attract investment.

Exporting to India: The Opportunities

In many situations, the potential rewards of exporting to India outweigh any challenges exporters may face. Exporters should identify and cultivate business opportunities while building a strategy to minimize the risks.

With this population boom comes the need for new industries, infrastructure, and more. According to International Trade Administration, the following sectors provide growth opportunities for U.S. companies in the Indian market:

• Aerospace and Defense
• Educational Services
• Energy
• Environmental Technologies
• Healthcare and Life Sciences
• Information and Communication Technology
• Mining and Critical Minerals
• Travel and Tourism

Export Assistance

If you do decide that the benefits of exporting to India outweigh the considerations, the best thing about exploring the opportunities to export to India is knowing you don’t need to go it alone. You can rely on assistance from your in-country allies, including the U.S. Commercial Service office, trade missions and chambers of commerce.

U.S. Commercial Service Offices

One of the first places to consider are your local and in-country U.S. Commercial Service offices. Commercial Service in-country offices effectively serve as your business partners in India—boots on the ground in the country. Commercial service offices also include representation by an agent, distributors or partners who can provide essential local knowledge and contacts that are crucial to your success.

You can learn more about in-country offices in our article, Tapping into the U.S. Commercial Service's In-Country Offices.

District Export Councils (DECs)

DECs across the country can help exporters by supporting trade and services that strengthen individual companies, stimulate U.S. economic growth, and create jobs. DEC members also serve as mentors to new exporters and can provide advice to smaller companies.

Trade Missions

Sponsored by state and local trade offices as well as commercial service offices, trade missions offer introductions to important contacts and networking opportunities. Check into them.

International Trade Administration

The ITA is an excellent resource to help you combat trade problems. ITA staff members are resident experts in advocating for U.S. businesses of all sizes. They customize their services to help solve your trade dilemmas as efficiently as possible. Plus, the ITA makes it easy to report a problem, allowing you to submit your report online.

Chambers of Commerce

Chambers of Commerce may also be a resource when exporting to India. You can learn more about various chambers and how they can help smooth the way for your export activities in our article, The Chamber of Commerce Role in Exporting.

Export Document Requirements for India

Export documentation and procedures for India are as critical as they are for any other country. Documents you need to export to India from the U.S. will vary depending on your products, but may include:

• Bill of lading
• Commercial invoice
• Packing list
• Sales contract
• Proforma invoice
• AES filing
• Customs declaration
• Insurance policy

You can study up on documentation requirements here.

Export Compliance Issues When Exporting To India

It’s important to understand the regulations covering exports to India, especially export controls.

Product Classification for Export Controls

The first step in ensuring export compliance is determining who has jurisdiction over your goods: Is it the U.S. Department of Commerce under the Export Administration Regulations (EAR) or the State Department's Directorate of Defense Trade Controls (DDTC)?

If your goods fall under the jurisdiction of the Commerce Department, which most products do, you must determine if your export requires authorization from the Bureau of Industry and Security (BIS, part of the Commerce Department). To do so you need to answer the following questions:

• What is the Export Control Classification Number (ECCN) of the item?
• Where is it going?
• Who is the end user?
• What is the end use?

There are three ways to classify your products for export controls: You can self-classify your products, submit a SNAP-R request for a ruling, or rely on the product vendor to provide the information. If you’re self-classifying, Shipping Solutions Product Classification Software makes the process easier than manually searching through codes and regulations. You can give it a try for free here.

By classifying your product correctly, you’ll be protecting yourself from potential fines, penalties and even jail time.

Export License Determination

Next, companies must use the ECCN codes and reasons for control described above to determine whether or not there are any restrictions for exporting their products to specific countries. Once they know why their products are controlled, exporters should refer to the Commerce Country Chart in the EAR to determine if a license is required.

Although a relatively small percentage of all U.S. exports and reexports require a BIS license, virtually all exports and many reexports to embargoed destinations and countries designated as supporting terrorist activities require a license. Countries fitting that bill are Cuba, Iran, North Korea and Syria.

Part 746 of the EAR describes embargoed destinations and refers to certain additional controls imposed by the Office of Foreign Assets Control (OFAC) of the Treasury Department.

Shipping Solutions Professional export documentation and compliance software includes an Export Compliance Module that uses the ECCN code for your product(s) and the destination country to tell you if an export license is required. If indicated, you must apply to BIS for an export license through the online Simplified Network Application Process Redesign (SNAP-R) before you can export your products.

There are export license exceptions, like low-value or temporary exports, that allow you to export or reexport, under stated conditions, items subject to the Export Administration Regulations (EAR) that would otherwise require a license. These license exceptions cover items that fall under the jurisdiction of the Department of Commerce, not items controlled by the State Department or some other agency.

Deemed Exports

Surprise! You may be an exporter without even knowing it! Deemed exports, or the disclosure of information or services rather than an actual product, is an important issue to pay attention to when exporting. A deemed export occurs when technology or source code (except encryption and object source code, which is separately addressed in the EAR) is released to a foreign national within the United States.

Sharing technology, reviewing blueprints, conducting tours of facilities, and other information disclosures are considered potential exports under the deemed export rule and should be handled accordingly.

Restricted Party Screenings

Restricted party lists (also called denied party lists) are lists of organizations, companies or individuals that various U.S. agencies—and other foreign governments—have identified as parties that one can’t do business with. There are several reasons why a person or company may be added to a restricted party list. For example, they may be a terrorist organization or affiliated with such an organization; they may have a history of corrupt business practices; or they may otherwise pose a threat to national security.

Restricted party screening (or denied party screening) refers to the process in which a company checks a potential customer or business partner against one or more of the restricted party lists to ensure their potential partners are legally accepted. The primary restricted party lists in the United States are published by the Department of Commerce, Department of State, and Department of Treasury. However, several other agencies produce lists as well. These agencies recommend that companies perform restricted party screening periodically and repeatedly throughout the movement of goods in the supply chain.

When exporting to India, it’s imperative you check every restricted party list every time you export. If not, you could face the following penalties:

• Fines for export violations can reach up to $1 million per violation in criminal cases.
• Administrative cases can result in a penalty amounting to $250,000 or twice the value of the transaction, whichever is greater.
• Criminal violators may be sentenced to prison for up to 20 years, and administrative penalties may include denial of export privileges.

Shipping Solutions Restricted Party Screening Software makes it fast and easy to check hundreds of lists at once, and it provides detailed information about potential matches, so you can make an informed decision about what to do next. Give it a try for free.

Exporting to India: Key Takeaways

India remains one of the largest and fastest-growing export markets for U.S. companies. However, evolving tariff policies, regulatory requirements, and trade negotiations mean exporters should carefully monitor developments in U.S.–India trade relations when planning their market strategy.

Exporters also need reliable processes for documentation and compliance. That includes preparing accurate export forms, understanding applicable regulations and screening customers, suppliers and other trade partners against restricted party lists.

That’s where Shipping Solutions can help.

With Shipping Solutions export documentation and compliance software, exporters can quickly create accurate export documents, run restricted party screenings against hundreds of lists at once, and reduce the risk of costly compliance mistakes.

For companies that want additional support, GLOBAL GATEWAY by Shipping Solutions brings everything together in one place. This all-in-one export management service combines expert compliance support, integrated export documentation and discounted international shipping in a single streamlined solution.

Whether you’re just beginning to export or already shipping worldwide, Global Gateway works like an extension of your logistics team—without the added overhead.

You don’t need to master every detail of international trade to succeed globally. You just need the right partner.

Schedule a free, no-obligation consultation to learn how we can support your exports.

This is one in a series of articles exploring exporting to specific countries across the globe—we previously featured ASEAN countries, Australia, Brazil, Canada, China, the EU, France, Germany, India, Israel, Japan, Mexico, the Netherlands, Russia, Singapore, South Korea, Taiwan and the United Kingdom.

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