India’s Exports Jump 19% in November, Trade Deficit Falls to Five-Month Low

After witnessing a contraction in October, India’s export sector staged a strong and reassuring comeback in November. Outbound shipments rose sharply by 19.37% to $38.13 billion, according to official data released by the government on Monday. This rebound, driven largely by robust demand for engineering goods and electronics, helped narrow the country’s trade deficit to a five-month low of $24.53 billion.

The improvement comes as a relief after October saw the trade gap widen to record levels, raising concerns among policymakers and industry stakeholders. November’s numbers suggest that India’s external trade performance may be stabilising after a volatile start to the second half of the financial year.

A Dip in Imports Helps Ease Trade Pressure

A key factor behind the narrower trade deficit in November was a decline in imports. Inbound shipments fell by 1.88% to $62.66 billion, primarily due to reduced imports of coal, coke, Gold, and crude oil. The softer import bill significantly eased pressure on the trade balance during the month.

In contrast, the trade deficit had touched a record high of $41.68 billion in October, underscoring the scale of the turnaround. Before November, the last time the deficit was lower was in June, when it stood at $18.78 billion.

April–November Picture Remains Mixed

While November’s performance offers encouragement, the broader picture for the April–November period remains uneven. Cumulative exports during the first eight months of the financial year rose by 2.62% to $292.07 billion. However, imports grew at a faster pace of 5.59%, reaching $515.21 billion.

As a result, India’s total trade deficit for the April–November period widened to $223.14 billion. This highlights the continuing challenge of managing import growth, even as exports show signs of resilience across several sectors.

Commerce Secretary Rajesh Agrawal acknowledged the significance of November’s turnaround, noting that the strong export numbers helped offset the dip seen in October. “November has been a good month for exports,” he said, adding that the data points to improving momentum in key manufacturing and technology-driven segments.

US Retains Position as India’s Top Export Market

Despite facing a 50% tariff barrier, the United States continued to be India’s largest export destination between April and November 2025. Federation of Indian Export Organizations (FIEO) President S C Ralhan said this performance underlines the adaptability and competitiveness of Indian exporters in a challenging global trade environment.

Other major export destinations during the period included the United Arab Emirates, the Netherlands, china, the United Kingdom, Germany, Singapore, Bangladesh, Saudi Arabia, and Hong Kong, reflecting India’s increasingly diversified export footprint.

Ralhan emphasized that sustained export growth has been supported by market diversification and strong performance across multiple sectors, including engineering, electronics, and pharmaceuticals. He added that with continued policy support, improved logistics infrastructure, and better access to affordable export credit, India’s export sector is well-positioned to maintain growth momentum in the coming months.