India’s trade deficit narrowed sharply in November, helped by a strong surge in exports that touched a nearly three-and-a-half-year high, even as the country continues to face steep 50% tariffs imposed by the United States.
According to data released by the Ministry of Commerce and Industry on Monday, India’s trade gap stood at $24.53 billion in November. The figure came in lower than all estimates projected by economists surveyed by Bloomberg, offering some relief after October’s record deficit.
Exports climbed to $38.13 billion, registering a 19.4% year-on-year increase and marking the highest level since June 2022. Commerce Secretary Rajesh Agrawal said the strong performance was largely driven by India’s growing penetration into newer export markets, including China.
In contrast, India’s trade deficit had widened to an all-time high of $41.7 billion in October, after shipments to the US fell sharply following punitive tariffs announced by former US President Donald Trump.
The latest trade data comes amid slow-moving US-India trade negotiations. Trump and Prime Minister Narendra Modi spoke last week for the fourth time since the tariffs on Indian goods came into effect in August, but a formal agreement remains elusive.
India is still among the few major global economies that have not yet finalized a trade deal with Washington. The prolonged delay has kept pressure on the Indian rupee, which slipped to a fresh record low against the dollar on Monday. However, the currency trimmed losses after the trade data release and was trading about 0.3% weaker at 90.69.
On the imports front, inbound shipments declined 1.9% year-on-year to $62.66 billion in November, contributing further to the narrowing trade deficit.
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