India's exports rise 19% in November, trade deficit hits 5 month low

India’s merchandise trade deficit narrowed to a five-month low of $24.53 billion in November, aided by a sharp decline in gold, oil and coal imports, even as exports registered strong growth, government data released on Monday showed.The trade deficit eased significantly from a record $41.68 billion in October, while in November last year it stood at $31.93 billion. The improvement was supported by rising exports and moderated import demand.According to information, merchandise exports rose to $38.13 billion in November, marking a 19.38% year-on-year increase compared with $31.94 billion in the same month last year. Export momentum rebounded after a weak October, when overall merchandise exports had declined 12% year-on-year.Shipments to the United States climbed to $6.98 billion in November, posting a 22.6% annual growth and exceeding October’s $6.31 billion. Exports to the US returned to positive territory after contracting 11.9% in September and 8.6% in October.
“A healthy growth in exports has helped narrow the trade deficit. November has evened out our losses in October,” stated Commerce Secretary Rajesh Agrawal. He added that exports to the US have increased even amid elevated tariff levels.On the proposed India–US trade agreement, Agrawal said discussions between negotiators from both sides were continuing, with positive outcomes expected. “We are in a zone where formal rounds may not be needed, but engagement remains on,” he said.Merchandise imports declined to $62.66 billion in November, from $63.87 billion a year earlier, reflecting lower inbound shipments of key commodities such as gold, oil and coal.
According to data from the Ministry of Commerce and Industry, India’s total exports, including services, stood at $73.99 billion in November, registering 15.52% year-on-year growth. Total imports, including services, were estimated at $80.63 billion, down 0.6% from the same month last year.The Federation of Indian Export Organisations said diversification of markets and resilience across several sectors supported export growth. FIEO President SC Ralhan noted that sustained policy support, improved logistics efficiency and access to competitive export financing would help maintain the positive export trajectory in the coming months.During the April–November period, the US remained India’s top export destination, even after the imposition of 50% tariffs on a large part of India’s export basket, reflecting the adaptability of Indian exporters, Ralhan said.
Engineering goods exports staged a strong recovery after a sharp fall in October, rising 23.7% year-on-year to $11.01 billion in November 2025. Pankaj Chadha, chairman of the Engineering Export Promotion Council of India, said the latest figures were encouraging given the challenging global trade environment. He added that the performance highlighted the sector’s resilience and swift adaptation, supported by government initiatives.Meanwhile, the cumulative value of gold imports during April–November stood at $45.3 billion, marginally higher than $43.8 billion in the corresponding period last year, mainly due to elevated global gold prices.Overall, easing imports and renewed export momentum helped stabilise India’s trade position in November, offering relief after the sharp widening of the deficit in October,noted experts.

(Business Correspondent)