India's merchandise exports witnessed a robust growth of 19 per cent in November 2025, providing a significant boost to the trade sector and narrowing the trade deficit to a five-month low. Official data released by the Commerce and Industry Ministry on Monday revealed that the surge was propelled by strong performances in engineering and electronics goods, alongside a weaker rupee enhancing competitiveness.
Key Numbers Behind the Export Resurgence
Outbound shipments climbed to $38.13 billion in November, a notable increase from $31.94 billion recorded in the same month last year. Concurrently, imports saw a marginal decline to $62.22 billion from $63.87 billion. This favourable movement was largely attributed to a steep 60 per cent drop in gold imports.
The combined effect of higher exports and slightly lower imports helped shrink the trade deficit to $24 billion, a significant improvement from the $32 billion gap seen in November of the previous year.
Geographical Diversification and US Tariff Challenge
A striking feature of the November data is the resilience shown in key markets. Exports to the United States surged by 22.61 per cent to nearly $7 billion. This growth is particularly significant as it comes despite the full implementation of 50 per cent punitive US tariffs on a range of Indian goods, which took effect on August 27. This rebound follows two consecutive months of decline in shipments to the US in September and October.
Commerce Secretary Rajesh Agrawal commented on the ongoing trade talks, stating, "We are very close on at least the framework deal, which we feel can be done in a short period of time." He was referring to negotiations for an interim pact aimed at addressing reciprocal tariff issues.
Other markets also showed impressive growth. Shipments to China skyrocketed by 90 per cent to $2.20 billion, while exports to Hong Kong grew 35.53 per cent. Strong demand was also noted in European nations including the United Kingdom, Germany, Spain, and Belgium.
Sectoral Drivers and Policy Support
The recovery was spearheaded by engineering and electronics goods. Pankaj Chadha, Chairman of the Engineering Export Promotion Council of India (EEPC), highlighted the sector's resilience, noting a rebound in November after a sharp fall in October. "The strong performance shows the resilience of the engineering industry and how it has been swiftly adapting," he said.
The rapid depreciation of the Indian rupee, which fell 5.6 per cent against the US dollar in November compared to the same month last year, provided an additional tailwind for exporters by making Indian goods more affordable in foreign markets.
SC Ralhan, President of the Federation of Indian Export Organisations (FIEO), credited the diversification of export markets and dynamism in key sectors for the growth. He expressed optimism for the future, citing continued policy support and improved logistics.
Secretary Agrawal also mentioned that the government is finalising guidelines for the Rs 25,060-crore export promotion mission, with some components set to be rolled out soon. While acknowledging that this support may not fully counter the high US tariffs, he stated it would provide crucial relief, especially in areas like exporter liquidity.
The November figures underscore a positive trajectory for India's external trade, demonstrating an ability to navigate global headwinds and capitalize on opportunities in a diversified set of markets.
