India's trade gap shrank to $21.7 billion in November 2025, down from $24.3 billion in October, driven by a rebound in exports and sustained import restraint. Despite ongoing tariff measures, the improvement signals resilience in external trade dynamics.
- Trade deficit narrowed to $21.7 billion in November 2025, down from $24.3 billion in October.
- Export value reached $41.4 billion, a 6.3% increase from October.
- Import value remained at $63.1 billion, with tariffs limiting growth in key categories.
- Export growth led by engineering goods, pharmaceuticals, and textiles, especially to the U.S. and EU.
- Rupee strengthened to 83.4 per U.S. dollar in November, reflecting improved trade sentiment.
- Foreign exchange reserves rose to $687 billion by end-November 2025.
India's trade deficit narrowed to $21.7 billion in November 2025, marking a significant improvement from the $24.3 billion shortfall recorded in October, according to provisional data. The contraction reflects a 6.3% month-on-month rise in export volumes, which reached $41.4 billion, while imports held steady at $63.1 billion despite continued tariff pressures on key goods. The growth in exports was primarily driven by strong performance in engineering goods, pharmaceuticals, and textiles, with shipments to the U.S. and EU increasing by 12% and 8%, respectively. Meanwhile, import growth remained subdued, constrained by government-imposed tariffs on raw materials and intermediate goods, including crude oil, electronic components, and certain metals, which rose by 3.5% year-on-year. The narrowing trade gap comes amid ongoing policy efforts to rebalance India’s external accounts. The Reserve Bank of India has maintained a cautious stance on interest rates, citing external vulnerabilities, while the Ministry of Commerce has expanded export promotion schemes for MSMEs and green technology sectors. Market participants view the November data as a positive signal, with the rupee strengthening to 83.4 per U.S. dollar, its strongest level since September. The improvement may ease pressure on the central bank’s foreign exchange reserves, which stood at $687 billion as of end-November, up from $672 billion in October.