(MENAFN) India’s goods exports to the US rose for the first time in five months in October, increasing 14.5% from September, even as steep US tariffs remain in place.

Exports to India’s largest foreign market had dropped sharply last month after 50% US tariffs—including a 25% penalty on Russian oil purchases—took effect on August 27.

The improved figures coincided with Indian state-run oil firms agreeing to import more annual liquified petroleum gas (LPG) from the US, and Trump exempting many farm goods from reciprocal tariffs, benefiting India.

Trade deal negotiations between the two countries are ongoing, with an Indian official saying key aspects are nearing closure.

The rise in US-bound exports occurred even as India’s overall goods exports fell 11.8% year-on-year in October, with 15 of its top 20 markets reporting declines.

“Tariff-exempt sectors such as smartphones and pharmaceuticals may have performed better—though this remains a tentative assumption,” said Ajay Srivastava of the Global Trade Research Initiative (GTRI) in Delhi.

“Despite the October rebound, India’s shipments to the US have dropped nearly 28.4% between May and October, erasing more than $2.5bn in monthly export value,” Srivastava added.

Trade tensions appear to be easing after months of uncertainty. On Monday, India finalized a deal for state-run oil companies to source roughly 10% of the country’s annual LPG needs from the US.

Petroleum Minister Hardeep Singh Puri called the decision a “historic development,” noting that the world’s largest and fastest-growing LPG market has now opened to the US.

The Trump administration has urged India to increase US petroleum imports and reduce reliance on Russian oil. India became one of Russia’s largest oil markets after Western sanctions were imposed in 2022, buying $52.7bn of Russian crude last year—37% of its oil bill. Trump has repeatedly called on India to cut these purchases, which Delhi has not officially confirmed.

India is navigating a diplomatic balance on energy imports as Russian President Vladimir Putin prepares to visit Delhi next month to finalize several agreements.

Despite previous delays over India’s refusal to reduce Russian oil imports, trade talks with the US now appear to be moving quickly. A senior government official told The Hindu newspaper that the first phase of the trade deal is “more or less near closure.”

India also stands to gain from the US’s rollback of reciprocal tariffs on certain agricultural products, including tea, coffee, and spices, which analysts say would effectively exempt about $1bn of Indian farm exports from duties.

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