India’s trade deficit narrowed in November after exports rebounded from the previous month, including a surprise jump in shipments to the US despite high tariffs and a decline in gold imports.
The deficit eased to $24.53 billion last month, lower than estimates and down from a record $41.7 billion in October.
Exports grew at the fastest pace in more than three years, surging 19.4 per cent from a year earlier to $38.13 billion, official data showed. The growth was largely supported by India’s push into markets like China, although there was also a sharp rebound in shipments to its biggest export destination, the US.
“Despite tariffs, we have been able to hold our exports,” commerce secretary Rajesh Agrawal told reporters in New Delhi on Monday. “If you look at it sector wise, we might have gone down in some sectors and up in some sectors.”
Imports fell 1.9 per cent in November from a year earlier to $62.66 billion. Gold imports plunged to $4.02 billion in November from $14.7 billion in the previous month after the end of the Diwali festival season.
Exports to the US surged 23 per cent in November from a year earlier, after declining 9 per cent in October, official data showed. Monthly trade data tend to be volatile because they can be affected by the timing of shipments and clearing of customs.
The data comes at a time when US-India trade talks are inching forward at a snail’s pace. The country remains one of the only major economies yet to strike a trade deal with Washington. The delay continues to pressure the rupee, which fell to a fresh low against the dollar on Monday.
Seesaw
The commerce secretary informed that sectors like electronics, engineering, chemicals and gems and jewellery helped in pushing merchandise exports.
In November, exports of petroleum products rose by 11.65 per cent to $3.93 billion. The other commodities which recorded positive growth included tea, coffee, iron ore, cashew, oil meals, dairy, handicrafts, marine products and leather goods.
However, shipments of rice, oil seeds, carpet and plastics recorded negative growth.
Agrawal also said that the ministry is finalising the detailed guidelines of the ₹25,060-crore export promotion mission, and a few components of it will be rolled out this week itself.
Federation of Indian Export Organisations (FIEO) president S.C. Ralhan said during April-November 2025, the US remained India’s top export destination, despite the imposition of a 50 per cent tariff, clearly demonstrating the resilience and adaptability of the exporting community.
Other major export destinations during this period included the UAE, the Netherlands, China, the UK, Germany, Singapore, Bangladesh, Saudi Arabia and Hong Kong.
“Diversification of export markets, along with the continued resilience of several key sectors, has played a crucial role in supporting export growth.
“With sustained policy support, enhanced logistics efficiency and access to competitive export financing, India’s exports are well-positioned to maintain this positive trajectory in the coming months,” he said.