India’s external trade performance showed a notable improvement in November, with exports rising sharply by 19% year-on-year, while the trade deficit narrowed to its lowest level in five months. The stronger export momentum, combined with moderated import growth, provided relief to the country’s trade balance after months of volatility.

Key Highlights

• India’s exports surged 19 percent in November, reflecting stronger global demand across key sectors.
• Merchandise trade deficit narrowed to a five-month low as import growth remained controlled.

Merchandise exports benefited from improved global demand in select sectors, alongside better price realisations for key commodities. Engineering goods, petroleum products, and certain manufacturing segments contributed to the overall rise, reflecting gradual stabilisation in international trade conditions. At the same time, exports of services continued to remain resilient, supporting overall foreign exchange inflows.

On the import front, growth remained relatively subdued, aided by easing commodity prices and controlled domestic demand. Lower imports of crude oil and select non-essential goods played a role in reducing the overall trade gap. As a result, India’s merchandise trade deficit contracted significantly, reaching a five-month low and offering comfort to policymakers monitoring external vulnerabilities.

Also Read: India & Russia Set $100 Bn Trade Goal by 2030, Continue Crude Ties

Economists note that the narrowing trade deficit could help support the Indian rupee and improve the country’s current account position in the near term. However, they caution that global uncertainties — including geopolitical tensions, currency fluctuations, and shifting demand patterns in major economies — may continue to influence trade flows.

Overall, the November data signals a positive shift in India’s trade dynamics, with stronger exports and a contained trade deficit providing a more balanced outlook for the external sector heading into the remainder of the financial year.