Trade deficit hits 5-month low on dip in gold, oil imports

New Delhi: India’s merchandise trade deficit narrowed to a five-month low of $24.53 billion in November, helped by a sharp decline in gold, oil and coal imports, even as exports jumped despite high US tariffs, government data showed on Monday.

Goods exports rose to $38.13 billion in November, which is 19.38% higher when compared with $31.94 billion recorded in the same month, last year.

Shipments to the US jumped to $6.98 billion in November, recording a growth of 22.6% year-on-year. It was also higher when compared with October’s $6.31 billion. India’s exports to the US have posted positive growth after two months of decline. It was down 11.9% in September and 8.6% in October on a year-on-year basis. Overall merchandise exports are down by 12% in October, when compared with the same month, last year.

A healthy growth in exports has helped narrow the trade deficit. Merchandise trade deficit, or gap between the value of exports and imports, narrowed to $24.53 billion in November from a record high of $41.68 billion in October. In November 2024, the trade deficit stood at $31.93 billion.

“November has evened out our losses in October,” Commerce Secretary Rajesh Agrawal said at a media
briefing.

He said the shipments to the US have increased, despite high tariffs. On the proposed India-US trade deal, Agrawal said negotiators from both sides were engaged and the positive outcomes are likely soon. “We are in a zone where formal rounds may not be needed, but engagement remains on,” he said.

India’s merchandise imports in November fell to $62.66 billion, from $63.87 billion in the same month, last year.

India’s total exports (merchandise and services combined) for November is estimated at $73.99 billion, registering a positive growth of 15.52% year-on-year. Total imports (merchandise and services combined) for November is estimated at $80.63 billion, which is 0.6% down, when compared with the same month last year, as per data released by the Ministry of Commerce and Industry.

Federation of Indian Export Organisations (FIEO) President SC Ralhan said diversification of markets along with the continued resilience of several key sectors, have played a crucial role in supporting export growth during the month.

“With sustained policy support, enhanced logistics efficiency, and access to competitive export financing, India’s exports are well-positioned to maintain this positive trajectory in the coming months,” Ralhan added.

Despite the imposition of a high 50% tariffs, the US remained India’s top export destination during the April-November period. This demonstrates the resilience and adaptability of India’s exporting community, he said.

After falling sharply in October, engineering goods exports jumped by 23.7% year-on-year to $11.01 billion in November 2025. “The latest numbers are quite encouraging, especially in light of the 50% punitive tariff imposed by the Trump administration on the bulk of items in India’s export basket,” said Pankaj Chadha, Chairman, Engineering Export Promotion Council of India.

“The strong performance in November shows the resilience of the engineering industry and also how it has been swiftly adapting to the evolving global situation with constant support from the government,” Chadha added.

Cumulative value of gold imports in the April-November period stood at $45.3 billion, which is marginally higher than $43.8 billion recorded in the corresponding period of last year. This increase is due to the rise in gold price.