India’s Trade Deficit Narrows to Five-Month Low in November on Export Surge
India Trade Deficit: India's trade deficit narrowed to a five-month low in November 2025 due to strong exports of engineering and electronic goods and a decline in gold and crude oil imports. Exports also increased by 19.37 percent to $38.13 billion.
The foreign trade scenario in the country has seen much-needed relief in November 2025. The export of goods like engineering and electronics, along with a dramatic decrease in gold imports, along with crude oil and coal, has allowed the trade deficit to dip to a five-month-low. As per official government statistics, the export of goods in November has gone up by 19.37 percent compared to last year at a total of $38.13 billion, marking the six-month high.
The rise in export shipments in November also shows a strong recovery from the decrease that was recorded in October. The country’s imports between the same period slightly eased and reduced the trade gap to $24.53 billion. The figure was previously standing at $18.78 billion in June and earlier rose to a record high of $41.68 billion in October. According to experts, this improvement reflects the improved performance of Indian exporters amid global challenges.
According to government data, total imports in November declined by 1.88 percent year-on-year to $62.66 billion. This was primarily due to a sharp decline in gold imports. Gold imports fell by 59.15 percent to nearly $4 billion in November. Crude oil imports also declined by 11.27 percent to $14.11 billion. Coal imports also declined, reducing pressure on the import bill.
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Despite global tariff-related challenges, engineering goods exports recorded a significant increase. In November, they increased by 23.7 percent to nearly $11.01 billion, compared to $8.9 billion a year earlier. Exports of petroleum products also increased by 11.65 percent to $3.93 billion. Furthermore, exports of tea, coffee, cashew nuts, oil mills, dairy, handicrafts, marine and leather products also saw significant growth.
However, the picture was not uniform across sectors. Exports of some products, such as rice, oilseeds, carpets, and plastics, declined in November. Officials attributed this to fluctuations in international demand and price pressure in some markets. However, the strength in overall exports offset these weaknesses.
Commerce Secretary Rajesh Agarwal stated that November was a good month for exports, compensating for the losses incurred in October. In the first eight months of the current financial year, from April to November, the country's total exports stood at $562.13 billion, a 5.83 percent increase from $533.16 billion in the same period last year. During the same period, services exports increased to $270 billion, compared to $248.56 billion a year ago.
