Indian goods are renowned globally, breaking a 10-year record in November
According to government data, India's trade deficit narrowed to $24.53 billion in November, well below economists' expectations of $32 billion and even lower than the record $41.68 billion recorded in October. Let's also tell you what kind of import and export figures the government has released...
Even though the US imposed a 50% tariff on India, India has established new trade relationships with several countries and increased its exports in response.
This impact was also reflected in the November figures. In November, the country's exports not only reached record levels but also broke a 10-year record. Meanwhile, the country's trade deficit also declined in November.
The estimated trade deficit was $30 billion, but the actual trade deficit fell below $25 billion, the lowest in five months. Furthermore, exports to the US have also increased. Let us explain what the official data reveals.
10-year export record broken in November
According to government data released on Monday, India's exports in November increased by 19.37 percent to US$38.13 billion, while imports declined by 1.88 percent to US$62.66 billion.
Commerce Secretary Rajesh Agarwal said that November's exports compensated for the losses incurred in October this year. He said that the US$38.13 billion export in November was the highest in the last ten years.
In the month of October, India's exports were $34.38 billion, while imports were $76.06 billion. Overall, from April to November, exports increased by 2.62 percent to US$292.07 billion, while imports increased by 5.59 percent to US$515.21 billion during the eight months.
There was also a reduction in the trade deficit
The trade deficit also declined in November. This marks the first time in five months that the trade deficit has declined. According to the data, the country's trade deficit narrowed to US$24.53 billion in November.
According to a Reuters survey, economists had expected the trade deficit to be US$32 billion in November, while the previous month saw a record US$41.68 billion.
Overall, the country's trade deficit from April to November has reached US$223.14 billion. Commerce Secretary Rajesh Agarwal stated that despite the tariffs, India maintained its strong position in terms of exports from the US. He further stated that the decline in imports was due to a decrease in gold, oil, and coal imports.
India's exports to the US
According to the data, Indian merchandise exports to the US in November rose nearly 10 percent month-on-month to $6.92 billion. Compared to the previous year, the increase was more than 21 percent, up from $5.71 billion a year earlier.
In October, exports to the US fell nearly 9 percent to $6.31 billion, down from $6.91 billion a year earlier, though still higher than September's $5.47 billion.
The central government has taken several measures, including consumer tax cuts, an export incentive package, and labor reforms, to insulate the economy from the heavy impact of US tariffs.
Prime Minister Modi spoke with US President Donald Trump last week following a visit by a US trade delegation, as New Delhi seeks relief on key export routes.
Washington is pressuring India to reduce tariff and non-tariff barriers on US goods and open its market to American agricultural products, including soybeans and sorghum.
According to government data, services exports in November were estimated at $35.86 billion and imports at $17.96 billion, indicating a services trade surplus of $17.9 billion, according to Reuters calculations.
Tariff
United States of America