India trims trade gap to $24.5 billion in November, exports hold firm despite tariff heat

India’s trade deficit narrows in November as exports to US rise despite tariff pressures

India’s merchandise trade deficit shrank sharply to $24.53 billion in November, down from $41.68 billion in October, signalling improved trade momentum driven by stronger exports and a dip in imports, according to government data released on December 15.

Commerce Secretary Rajesh Agrawal described November as “a good month in terms of import-export,” highlighting a 1.35% uptick in exports to $38.13 billion and a 1.88% decline in imports to $62.66 billion.

The drop in the trade deficit — from $31.93 billion a year ago to $24.53 billion this November — was aided by healthy performance in engineering goods, electronics, and gems and jewellery. Services trade also remained robust, with exports climbing to $35.86 billion and a surplus of $17.90 billion recorded, up from $14.86 billion in the same month last year.

Agrawal noted that India’s exports to the US alone rose by $1.3 billion in November over the previous year, reaching $6.98 billion. “India’s goods exports to the US are holding up despite high tariffs,” he said.

For the April-November period, merchandise exports rose to $292.07 billion, while imports increased to $515.21 billion. Exports to the US during this window hit $59.04 billion, up from $53.01 billion a year earlier. Imports from the US also saw a rise to $35.40 billion.

Among other trade partners, India’s exports to the UAE reached $25.49 billion, and imports stood at $40.81 billion. Imports from China rose to $84.27 billion, while those from Russia declined to $40.81 billion.

To cushion the economy from external shocks like steep US tariffs, the central government has implemented tax cuts, export incentives, and labour reforms — moves that appear to be helping India navigate global trade challenges.