US-Bound India Exports Surge Despite Tariff Pressure
Shipments Rise 23% in November After October Decline
Key Takeaways:
- India’s trade deficit narrowed to $24.53 billion in November from a record $41.7 billion in October as exports rebounded, official data showed.
- Exports jumped 19.4% from a year earlier to $38.13 billion, led by growth into China and a 23% surge in shipments to the U.S. despite high tariffs.
- Imports fell 1.9% to $62.66 billion, helped by a sharp drop in gold purchases, as slow U.S.-India trade talks continue to weigh on the rupee.
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India’s trade deficit narrowed in November after exports rebounded from the previous month, including a surprise jump in shipments to the U.S. despite high tariffs.
The deficit eased to $24.53 billion last month, lower than all estimates in a Bloomberg survey of economists, and down from a record $41.7 billion in October.
Exports grew at the fastest pace in more than three years, surging 19.4% from a year earlier to $38.13 billion, official data showed. The growth was largely supported by India’s push into markets like China, although there was also a sharp rebound in shipments to its biggest export destination, the U.S.
“Despite tariffs, we have been able to hold our exports,” Commerce Secretary Rajesh Agrawal told reporters in New Delhi on Dec. 15. “If you look at sector wise, we might have gone down in some sectors and up in some sectors.”
Imports fell 1.9% in November from a year earlier to $62.66 billion. Gold imports plunged to $4.02 billion in November from $14.7 billion in the previous month after the end of the Diwali festival season.
Exports to the U.S. surged 23% in November from a year earlier, after declining 9% in October, the official data showed. The Ministry of Commerce and Industry didn’t immediately respond to a request for details on which sectors drove the rise in U.S.-bound exports.
Monthly trade data tend to be volatile because they can be affected by the timing of shipments and clearing of customs.
The data comes at a time when U.S.-India trade talks are inching forward at a snail’s pace. Last week, U.S. President Donald Trump spoke with Prime Minister Narendra Modi for thefourth timesince the hefty tariffs on Indian goods took effect in August.
While Agrawal did not offer a timeline for the U.S. deal, he said New Delhi is “very close” to signing a framework agreement.
India remains one of the only major economies yet to strike a trade deal with Washington. The delay continues to pressure the rupee, which fell to a fresh low against the dollar on Dec. 15. It pared losses after the trade data, and was last trading 0.3% lower at 90.72.
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