India’s trade deficit narrowed significantly in November 2025, dropping to $14.3 billion from $21.8 billion in the same month the previous year, driven by a 12.5% year-on-year increase in exports. The improvement reflects stronger global demand for Indian manufactured goods and commodities.
- Trade deficit narrowed to $14.3 billion in November 2025, down from $21.8 billion in November 2024.
- Exports surged 12.5% YoY to $42.6 billion, led by textiles (up 16.3%) and engineering goods (up 14.1%).
- Imports increased slightly to $56.9 billion, driven by higher crude oil and gold purchases.
- Jawaharlal Nehru Port Trust in Navi Mumbai played a key role in improving export logistics.
- Foreign exchange reserves rose to $678 billion by end-November 2025.
- Energy imports account for over 30% of total import value, posing ongoing risks.
India’s trade deficit decreased to $14.3 billion in November 2025, marking a notable improvement from the $21.8 billion deficit recorded in November 2024. This contraction was primarily fueled by a 12.5% year-on-year rise in export volumes, which reached $42.6 billion, according to official government data. The surge in exports was broad-based, with textiles, engineering goods, and petroleum products leading the growth. Meanwhile, imports rose slightly to $56.9 billion, up 2.1% compared to November 2024, reflecting higher crude oil and gold import costs. The rebound in export performance follows targeted government initiatives to boost manufacturing competitiveness and infrastructure upgrades at key ports such as Jawaharlal Nehru Port Trust (JNPT) in Navi Mumbai. Enhanced logistics efficiency at JNPT contributed to faster turnaround times and improved export throughput, supporting the uptick in trade flows. Additionally, sustained demand from regional markets in Southeast Asia and Europe helped sustain export momentum despite global economic headwinds. The narrowing trade gap has bolstered confidence in India’s external balance, reducing pressure on foreign exchange reserves. The Reserve Bank of India reported that forex reserves stood at $678 billion by the end of November, up from $665 billion in October. Market analysts note that continued export growth could help anchor inflation expectations and support the rupee’s stability amid rising global interest rate uncertainty. Sectors most affected include the textile industry, which saw a 16.3% export increase, and engineering goods exporters, whose shipments rose 14.1%. However, persistent high energy import bills remain a vulnerability, accounting for over 30% of total imports. Policymakers now face the challenge of sustaining export gains while managing input cost pressures and global supply chain volatility.