Despite facing a 50 percent tariff imposed by the United States, Indian goods continue to gain strong demand across global markets. By diversifying trade partnerships and expanding exports to multiple countries, India has managed to offset the impact of higher tariffs. This strength was clearly visible in November, when India not only recorded a sharp rise in exports but also broke a 10-year export record. At the same time, the country’s trade deficit declined significantly, reaching its lowest level in five months.
Exports hit highest level in a decade
According to official government data released on Monday, India’s exports rose by 19.37 percent in November to USD 38.13 billion. This is the highest export figure recorded in the last ten years. Imports, on the other hand, declined by 1.88 percent to USD 62.66 billion during the same month.
Commerce Secretary Rajesh Agarwal said that the strong export performance in November helped recover losses seen in October. In October, exports stood at USD 34.38 billion, while imports were much higher at USD 76.06 billion.
Looking at the broader picture, India’s exports between April and November increased by 2.62 percent to USD 292.07 billion. During the same period, imports rose by 5.59 percent to USD 515.21 billion.
Trade deficit narrows sharply
India’s trade deficit showed a major improvement in November. It narrowed to USD 24.53 billion, compared to USD 41.68 billion in October. This is the first decline in the trade deficit in the past five months and significantly lower than economists’ expectations of around USD 32 billion, as per a Reuters survey.
From April to November, India’s cumulative trade deficit stood at USD 223.14 billion. Commerce Secretary Agarwal attributed the November improvement to a fall in imports of gold, crude oil, and coal.
Exports to the US rise despite tariffs
Interestingly, Indian exports to the United States also showed strong growth despite higher tariffs. In November, merchandise exports to the US rose nearly 10 percent month-on-month to USD 6.92 billion. On a year-on-year basis, exports increased by over 21 percent, compared to USD 5.71 billion in November last year.
In October, exports to the US had declined by nearly 9 percent to USD 6.31 billion, though they remained higher than September’s USD 5.47 billion.
Government measures and services trade boost
To protect the economy from the impact of US tariffs, the central government has implemented several measures, including tax relief for consumers, export incentive schemes, and labor reforms. Prime Minister Narendra Modi also held discussions with US President Donald Trump last week after a visit by a US trade delegation, as India seeks relief for key export sectors.
Meanwhile, services trade continued to remain a strong pillar of the economy. According to government estimates, services exports in November stood at USD 35.86 billion, while imports were USD 17.96 billion. This resulted in a services trade surplus of USD 17.9 billion, according to Reuters calculations.
Overall, the November data highlights the growing global demand for Indian goods and services, reinforcing India’s position as a resilient and competitive exporter despite challenging global trade conditions.
