India’s exports grew at their fastest pace in more than three years in November, rising 19.4% year-on-year to $38.1 billion, driven by a sharp increase
in shipments to the US and China. With imports falling 2% to $62.7 billion, the country’s trade deficit narrowed to $24.6 billion, the lowest level since June, the latest data showed. Exports to the US are estimated to have climbed 22.6% to $7 billion during the month despite the impact of 50% additional tariffs, while shipments to China surged 90% to $2.2 billion. China overtook the Netherlands to become India’s third-largest export destination in November, although the European country remained marginally ahead during the April–November period. Also Read: Why India’s Trade Deficit Fell To A 5-Month Low In November “Despite the tariffs we have been able to hold our exports and imports are also growing (38% to $5.3 billion), which is a good thing for India-US trade,” a TOI report cited Commerce Secretary Rajesh Agrawal. Aditi Nayar, chief economist at ratings agency ICRA, said the rise in exports and the decline in imports reflected supply normalisation after the holidays and weaker demand following the festive season. The strong rebound in November followed a 12% contraction in exports in October, which had been attributed to US tariffs. “Nov export growth has more than made up for Oct,” Commerce and Industry Minister Piyush Goyal said ahead of the data release. Agrawal said the latest numbers indicated that exporters in several sectors were increasingly looking to diversify markets. The November recovery was broad-based, led by engineering goods, electronics, gems and jewellery, pharmaceuticals, chemicals, oil products and most segments of the textiles sector. However, five of the 30 major export sectors - rice, oil seeds, plastics, jute products and carpets - registered a decline during the month. On the import side, gold shipments fell sharply by 59% in November to $4 billion, compared with nearly $10 billion a year earlier. Imports of crude petroleum declined 11.3% to $14 billion, while vegetable oil imports dropped 20% to $1.5 billion. In contrast, imports rose in several categories, including electronics, which increased 16% to $8.8 billion, silver, which jumped 125% to $1.1 billion, and pearls and precious and semi-precious stones, which rose 90% to $1.8 billion. “…diversification of export markets, along with the continued resilience of several key sectors, has played a crucial role in supporting export growth. With sustained policy support, enhanced logistics efficiency, and access to competitive export financing, India’s exports are well-positioned to maintain this positive trajectory in the coming months,” FIEO chief S C Ralhan said in a statement. Services exports are estimated to have increased 11.9% in November to $35.9 billion, while services imports rose 4% to $18 billion.
