November helped offset the losses recorded in October, Commerce Secretary Rajesh Agrawal said on Monday, as India’s merchandise trade deficit narrowed to a five-month low of $24.53bn on the back of a rebound in exports.
The country's merchandise imports stood at $62.66bn in November, while exports were at $38.13bn, according to government data. In this period, merchandise exports to the US, India's largest export market, also rose over 21% year-on-year to $6.98bn against $5.70bn last year.
"November has helped offset the losses recorded in October, and the overall trade position for the first eight months of the year appears to be on a steady footing," Agrawal notes while presenting the data.
1 December 2025
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Besides the US, India's exports to China rose by $1bn, representing a sharp 90% increase. Spain recorded growth of 181%, the UAE grew by 13%, and Tanzania saw a rise of 126% on a month-on-month basis.
The overall reduction in imports was driven mainly by lower shipments of gold, crude petroleum, petroleum products, vegetable oils, coke, coal briquettes and related items, the ministry said.
Gold and silver imports, which had surged earlier, declined sharply in November. Gold imports alone fell by nearly 60%, helping reduce overall imports. Crude petroleum imports also declined, largely due to global disruptions. Vegetable oil imports were down by around 20% as well, it added.
India's trade deficit stood at a record $41.68bn in October, driven largely by a surge in gold and silver purchases. During the month, merchandise exports stood at $34.38bn against an import bill of $76.06bn.
"With the increase in the average merchandise trade deficit in October-November 2025, we estimate the current account deficit to widen to $20-24bn in Q3 FY2026 from $11-12bn each in Q3 FY2025 and Q2 FY2026," said Aditi Nayar, chief economist at ICRA.
India-US Trade
Despite headwinds, the US remained India's top export destination between April and November, 2025. Exports to the US jumped to $59.04bn during the last eight months as compared to $53.01bn during the same period last year.
Notably, India and the US are yet to finalise a trade deal, while most Indian goods entering Washington are subjected to a 50% steep tariffs since August 27.
While New Delhi seeks relief on key export lines, Washington is pushing India to lower tariffs and non-tariff barriers on U.S. goods and open its market to American farm products, including soybean and grain sorghum.
Looking ahead, Ranjeet Mehta, CEO at PHDCCI, noted that the government’s Export Promotion Mission (EPM) and deeper engagement across regions including the US, EU, Gulf Cooperation Council (GCC), and Asia-Pacific will play a pivotal role in propelling India’s export growth.
