Trade Deficit Narrows Sharply in November as Imports Fall and U.S.
Exports Rebound
·
November
Trade Deficit Narrows to Five-month Low of $24.53 bln
·
Lower
Gold, Oil and Coal Imports Drive Deficit Fall
·
Exports
to US Rebound; Up nearly 10% m/m, over 21% y/y
·
Commerce
Secretary says India, US Close to Framework Trade Deal
India’s
merchandise trade deficit
narrowed to a five-month
low of $24.53 billion in November, well below market
expectations of $32 billion, as imports of gold, crude oil and coal declined,
according to government data released on December 15. The deficit had hit a
record $41.68 billion in
October.
Merchandise
exports to the United
States rebounded strongly, rising nearly 10% month-on-month to $6.92 billion
and more than 21%
year-on-year, making the U.S. India’s largest export
destination in November. Overall merchandise exports climbed to $38.13 billion, while
imports fell sharply to $62.66
billion from $76.06 billion a month earlier.
Commerce
Secretary Rajesh Agrawal
said India has “held fort” on U.S. exports despite high tariffs and confirmed
that New Delhi and Washington are close
to finalising a framework agreement aimed at lowering
reciprocal tariffs. He recently led a delegation that met Rick Switzer in Delhi to
advance bilateral trade talks.
The
rebound follows a dip in U.S.-bound exports in October and comes amid policy
measures rolled out by the government of Prime Minister Narendra Modi, including
tax cuts, export incentives and labour reforms, to cushion the economy from
steep U.S. tariffs. Modi also spoke with U.S. President Donald Trump last week.
On
the services side, exports are estimated at $35.86 billion and imports at $17.96 billion, implying
a services trade surplus
of about $17.9 billion. Detailed services trade data will be
released later by the Reserve
Bank of India.
Ø
The
cumulative exports (merchandise & services) during April-November 2025 is estimated
at US$ 562.13 Billion, as compared to US$ 533.16 Billion in April-November 2024,
an estimated growth of 5.43%.
Ø
The
cumulative value of merchandise exports during April-November 2025 was US$ 292.07
Billion, as compared to US$ 284.60 Billion during April-November 2024, registering
a positive growth of 2.62%.
Ø
The
cumulative Non-Petroleum exports in April-November 2025 valued at US$ 254.08 Billion
registered an increase of 5.86% as compared to US$ 240.02 Billion in April-November
2024.
Ø
Major
drivers of merchandise exports growth in November 2025 include Engineering Goods,
Electronic Goods, Gems & Jewellery, Drugs & Pharmaceuticals and Petroleum
Products.
Ø
Engineering
Goods exports increased by 23.76 % from US$ 8.90 Billion in November 2024 to US$
11.01 Billion in November 2025.
Ø
Electronic
Goods exports increased by 38.96 % from US$ 3.46 Billion in November 2024 to US$
4.81 Billion in November 2025.
Ø
Gems
& Jewellery exports increased by 27.80 % from US$ 2.07 Billion in November 2024
to US$ 2.64 Billion in November 2025.
Ø
Drugs
& Pharmaceuticals exports increased by 20.91 % from US$ 2.16 Billion in November
2024 to US$ 2.61 Billion in November 2025.
Ø
Petroleum
Products exports increased by 11.65 % from US$ 3.52 Billion in November 2024 to
US$ 3.93 Billion in November 2025.
India's
merchandise trade deficit declined to a five-month low of $24.53 billion in November,
driven by a fall in gold, oil and coal imports, while exports to the U.S. picked
up, government trade data released on Monday (15.12.2025) showed.
Economists
had expected the November trade deficit to be $32 billion, according to a Reuters
poll, compared to a record deficit of $41.68 billion in the previous month.
Merchandise
exports to the U.S. rose nearly 10% month-on-month to $6.92 billion in November.
"India
has held fort on the U.S. exports despite tariffs,"
Rajesh Agrawal, India's commerce secretary told reporters.
Agrawal
said that India and the U.S. were close to finalising a "framework" agreement
but declined to specify a timeline.
"There's
a fair expectation that both countries will be able to agree to a deal to lower
reciprocal tariffs...We are positively engaged with the U.S. to see if we can close
it sooner than later," he said.
A
team led by Agrawal met U.S. Deputy Trade Representative Rick Switzer in Delhi last
week to discuss bilateral trade including talks on a proposed trade pact.
The
talks come after exports to the U.S. fell nearly 9% year-on-year to $6.31 billion
in October, though they were higher than $5.47 billion in September.
Exports to US Rebound
India's
overall merchandise exports rose to $38.13 billion in November from $34.38 billion
in October, while imports fell to $62.66 billion from $76.06 billion.
Merchandise
exports to the U.S., India's largest export market, rose over 21% year-on-year in
November, compared to $5.71 billion a year earlier.
Indian
Prime Minister Narendra Modi's administration has rolled out measures including
consumer tax cuts, an export promotion package and labour reforms to cushion the
economy from the impact of steep U.S. tariffs.
Modi
spoke with U.S. President Donald Trump last week.
While
New Delhi seeks relief on key export lines, Washington is pushing India to lower
tariffs and non-tariff barriers on U.S. goods and open its market to American farm
products, including soybean and grain sorghum.
The
government data showed November services exports are estimated at $35.86 billion
and imports at $17.96 billion, suggesting a services trade surplus at $17.9 billion,
according to Reuters calculation.
India's
central bank releases detailed monthly services trade data about two weeks after
the government's initial estimates.