Nov trade deficit shrinks as exports surge to 10-year high

Experts pointed to a likely strategic shift by Indian exporters in the face of US tariffs

- Dhirendra Kumar [e-mail]

India recorded its highest merchandise exports for the month of November in at least a decade, helping narrow the trade deficit sharply as imports fell from October’s elevated levels, according to commerce ministry data released on Monday.

Driven by rising shipments to countries such as the US, UAE and China, the gap between imports and exports narrowed to $24.53 billion in November, a sharp improvement from $41.68 billion in October.

Merchandise exports rose month-on-month to $38.13 billion from $34.38 billion in October, while imports declined to $62.66 billion from $76.06 billion in October. In November 2024, merchandise exports stood at $31.94 billion.

Experts said that several factors contributed to the trend. Trade economist Biswajit Dhar, who is also distinguished professor at Council for Social Development, New Delhi, said the recent depreciation of the rupee has played a big role, as a softer rupee helps exports and can support the current account position.