Trade Deficit Narrows In November As Imports Decline; US Export Rise Despite Tariffs

India's trade deficit narrowed in November, driven by higher exports and dip in imports. The combined trade deficit was $24.53 billion last month, compared to $31.92 billion in the same period last year, as per data released by the government on Monday.

The government attributed the decline in deficit to engineering goods, electronics, gems and jewellery.

Overall exports rose 1.35% to $73.99 billion from $64.05 billion in November 2024. Imports fell to $80.63 billion to $81.1 billion. This was also the best ever November so far for merchandise exports at $38.13 billion.

"Seeing meaningful reduction in imports of gold, coal, petroleum," said Commerce Secretary Rajesh Agrawal.

Agarwal further said that November has been a good month in terms of import-export. "November has evened out losses in October, looking good for the FY now," he added.

US exports have gone up $1.3 billion in November despite tariffs, Agrawal added. China has seen $1 billion exports and Spain, UAE, Tanzania are among geographies doing well.

Cumulative exports for this fiscal stand at $562.13 billion, compared to $533 billion. Merchandise exports for the same period stood at $292 billion, while non-petroleum goods saw a growth at $254.08 billion.

Top export destinations during the period of April to November were US, UAE and Netherlands, while top import destinations were China, UAE, Russia.

Despite the tariffs India has been able to hold US as a market, pointed Agarwal. He also noted that energy imports are growing for US and that's a good sign for the India-US trade.

India's top export commodities remain engineering goods, petroleum products and electronics. In addition, the top import commodities are petroleum, electronics and gold.

According to the Commerce Secretary despite headwinds India was able to hold ground in textile exports. This indicates that the exporters have diversified.

However, he pointed rice is a tight situation, but India is holding on amid challenges.

He also explained that 1/3rd of India's marine basket is US-bound and is doing well despite tariffs. Further there has been 20% growth in marine exports driven by Europe and ASEAN.

"Have been able to penetrate China market as well," said Agrawal. He further said that exports are growing to China.

By end of year, India will be getting more analysis on China market as well he added.