India’s trade deficit dropped to a five-month low in November as imports of gold and oil declined and exports to the US improved, strengthening the country’s trade balance.
India’s trade deficit has fallen to its lowest level in five months in November, bringing some relief to the economy. Fresh government data shows that lower imports and stronger exports, especially to the United States, helped narrow the gap after a worrying spike in October.
The merchandise trade deficit stood at $24.53 billion in November, which is much lower than market expectations. Experts had predicted the deficit could be around $32 billion, following the record high of $41.68 billion in October. This sharp improvement highlights better trade management and changing global demand.
One major reason for the fall in the India trade deficit was the sharp drop in imports. Total imports declined to $62.66 billion in November from $76.06 billion in October. Purchases of gold, crude oil, and coal came down, easing pressure on the import bill.
Commerce Secretary Rajesh Agrawal explained the trend clearly, saying, “India has held fort on the US exports despite tariffs.” He also pointed out that the fall in imports was linked to reduced demand for key commodities during the month.
On the export side, India showed a strong recovery after a weak October. Merchandise exports rose to $38.13 billion in November compared to $34.38 billion in the previous month. Exports to the United States played a big role in this improvement.
Exports to the US increased to $6.92 billion in November, nearly 10 percent higher than October. On a yearly basis, shipments to the US jumped by more than 21 percent compared to November last year, showing renewed demand despite trade challenges.
The government has taken several steps to support exporters, including tax relief measures, labour reforms, and export promotion schemes. Talks between Prime Minister Narendra Modi and US President Donald Trump, along with visits by US trade officials, have also helped strengthen trade ties.
Apart from goods, services trade continued to support India’s overall external position. Services exports were estimated at $35.86 billion in November, while imports stood at $17.96 billion. This created a healthy services trade surplus of nearly $17.9 billion.
Together, lower imports, better exports, and a strong services sector helped bring down the India trade deficit in November. Economists believe this trend, if sustained, could improve economic stability and boost confidence in India’s trade outlook in the coming months.
