India Exports Defy Trump Tariffs, Rise 19.4% in November

India Exports: India’s export sector delivered a sharp surprise in November, firmly proving that India exports defy Trump tariffs, even as the United States imposed steep 50% additional duties on select Indian goods. Official data released this week showed that India’s merchandise exports climbed to $38.1 billion, marking a 19.4% year-on-year rise and the strongest monthly performance in six months.

The export rebound came alongside a significant easing of the trade deficit, which narrowed to $24.6 billion, its lowest level since June. The improvement was driven not only by stronger outbound shipments but also by a decline in imports, reflecting softer demand and lower commodity inflows.

India Exports: Exports Hit Six-Month High Despite Tariff Headwinds

November’s export figure was the highest since May, when shipments stood at $38.73 billion. More notably, the growth represented the fastest monthly expansion since June 2022, underscoring the resilience of Indian exporters at a time when global trade remains uncertain.

Engineering goods, electronics, chemicals, and gems and jewellery emerged as key growth drivers. Shipments of electronics and engineering products, in particular, helped offset the pressure created by higher US tariffs.

Commerce Secretary Rajesh Agrawal said India had managed to maintain momentum despite adverse conditions. “Despite the tariffs, we have been able to hold our exports, and imports are also growing, which is a good thing for India-US trade,” he noted.

Imports Fall, Boosting Trade Balance

Imports declined by 2% to $62.7 billion in November, contributing to the narrower trade gap. The fall was largely due to a sharp reduction in commodity inflows:

• Gold imports plunged by 59.15% to $4 billion

• Crude oil imports fell 11.27% to $14.11 billion

• Lower purchases of coal and coke also supported the trend

By contrast, October had recorded a record trade deficit of $41.68 billion, highlighting the scale of November’s turnaround.

India Exports: US and China Lead Export Growth

One of the most striking aspects of the data was the surge in exports to both the United States and China, defying expectations amid trade friction.

Exports to the US rose to an estimated $7 billion in November, a 22.6% increase, even after the imposition of the 50% tariff. Shipments to China jumped even more sharply, surging 90% to $2.2 billion, allowing China to overtake the Netherlands as India’s third-largest export destination for the month.

Think tank GTRI suggested that the growth was likely driven by tariff-exempt or less-affected products such as smartphones, pharmaceuticals, and petroleum products. “October and November reversed the slide, despite no tariff relief,” the group said.

April–November Snapshot Shows Steady Expansion

For the April–November period, India’s exports rose 2.62% to $292.07 billion, while imports increased 5.59% to $515.21 billion. The cumulative trade deficit for the eight months stood at $223.14 billion.

Despite tariff pressures, the US retained its position as India’s largest export market during this period. Other major destinations included the UAE, the Netherlands, China, the UK, Germany, Singapore, Bangladesh, Saudi Arabia, and Hong Kong.

Policy Support and Market Diversification

Commerce and Industry Minister Piyush Goyal had earlier signalled a rebound after October’s decline, stating that November’s performance would “more than make up” for the earlier slump. Analysts pointed to market diversification strategies adopted by exporters as a key factor behind the recovery.

The government is also preparing to roll out guidelines for a Rs 25,060-crore export promotion mission, aimed at improving liquidity and easing financing constraints. While officials acknowledge that the support may not fully offset the impact of US tariffs, it is expected to provide critical relief to exporters.

FIEO President S C Ralhan said the data demonstrated the adaptability of Indian exporters. “Diversification of export markets, along with the continued resilience of several key sectors, has played a crucial role in supporting export growth,” he said.