India’s trade deficit narrows to $24.53 billion in November as exports hit 10-year high

India’s trade deficit narrowed sharply to $24.53 billion in November, compared with $31.93 billion in the same month last year, aided by a strong rise in exports and a contraction in imports, data released by the Ministry of Commerce and Industry showed on Monday.

Exports rose 23.15 per cent year-on-year to $38.13 billion, marking the highest monthly export level in the last ten years. Imports, meanwhile, declined 1.88 per cent year-on-year to $62.66 billion, helping improve the overall trade balance.

Exports shine in November

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Commerce Secretary Rajesh Agrawal said November turned out to be a strong month for exports, driven by sectors such as engineering goods, electronics, gems and jewellery, drugs and pharmaceuticals.

“Exports have done well in November and are moving in the right direction,” Agrawal told reporters, adding that trade with the United States has remained resilient despite tariff-related challenges.

Gold, silver imports decline sharply

On the imports front, the data showed a sharp contraction in gold and silver imports, which supported the narrowing of the trade gap. Gold imports fell nearly 60 per cent in November, while imports of petroleum products, vegetable oil and coal also declined during the month.

China continued to remain India’s largest import destination, while concerns persisted around rice exports, officials noted.

Exports to US remain resilient despite tariffs

Exports to the United States rose 22 per cent year-on-year to $6.97 billion in November, recovering from $6.3 billion in October.

Agrawal said, “We have been able to hold our exports to the US, despite the imposition of the tariffs.” The US had imposed 50 per cent tariffs on Indian goods, including a 25 per cent penalty linked to India’s purchase of Russian crude, effective August 27.

Despite this, both countries have reiterated their friendly bilateral ties, and India is currently engaged in talks with the US to reach a trade agreement. Recently, Prime Minister Narendra Modi also held a telephonic conversation with US President Donald Trump following a visit by a US trade delegation to New Delhi.

April–November trade performance

During the April–November period, India’s exports increased 2.62 per cent to $292.07 billion, while imports rose 5.59 per cent to $515.21 billion, the data showed.