India goods exports rise in November despite U.S. tariffs

India’s goods exports rose sharply in November despite higher U.S. tariffs, supported by stronger shipments to key markets and improved performance across multiple export sectors.

Total merchandise exports increased 19 per cent year on year to $38.13 billion in November, data showed, marking a strong rebound after recent months of pressure from global trade tensions.

India’s merchandise trade deficit narrowed significantly to $24.5 billion, compared with a record high of nearly $41.7 billion in October, and came well below a Reuters poll estimate of $32 billion.

Trade with the United States showed notable improvement. Exports to the U.S. rose 22.6 per cent year on year to $6.98 billion in November, exceeding shipments of $6.31 billion recorded in October. This followed declines of 8.6 per cent in October and 11.9 per cent in September, when higher tariffs weighed on demand.

Combined exports of goods and services climbed 15.52 per cent to $73.99 billion during the month, reflecting broader resilience in India’s external trade.

Several key sectors recorded year-on-year growth, including electronics, gems and jewellery, engineering goods, and readymade textiles, according to official figures.

The rebound comes despite Washington imposing an additional 25 per cent tariff on Indian imports in August, pushing total duties on some products to as high as 50 per cent, among the steepest levied by the U.S. on any trading partner. Textiles, gems and jewellery, and marine products were among the most affected categories.

“Despite global headwinds, India registered positive export growth with 14 out of its 20 major trading partners, reflecting increasing diversification and resilience in external trade,” said Rajeev Juneja, President of industry body PHDCCI.

Trade negotiations between India and the United States have been ongoing for several months, though a formal agreement has yet to be reached. Recent signals suggest both sides may be softening their positions, with U.S. President Donald Trump indicating that tariff reductions for India could be considered.

In an effort to narrow its trade surplus with Washington, India has increased oil and gas purchases from the United States and is also expected to step up imports of U.S. agricultural products, according to officials.