India’s goods trade deficit shrank to a 5-month low of $24.5 billion in November

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India’s merchandise trade deficit narrowed drastically to a five-month low of $24.53 billion in November from $41.68 billion in October thanks to a sharp decrease in gold, oil and petroleum imports, the Commerce Ministry said on December 15.

India's overall merchandise exports rose to $38.13 billion in November from $34.38 billion in October, while imports fell to $62.66 billion from $76.06 billion.

Major drivers of merchandise exports in November 2025 include engineering goods (23.76 percent on-year), electronics (38.96 percent), gems & jewellery (27.80 percent), drugs & pharmaceuticals (20.91 percent) and petroleum products (11.65 percent).

Merchandise exports to the US also rose over 22 percent on-year to $6.98 billion in November and almost 10 percent sequentially.

Commerce Secretary Rajesh Agrawal said, "in spite of tariffs our exports to US is holding versus last year and our imports to US are also growing, especially energy shipments."

The US has imposed 50 percent tariffs on most Indian goods from August 27.

Agrawal added, "gold imports have declined in November by about 60 percent that has helped narrow our deficit.”

Imports of gold dropped sharply to $4.02 billion last month from $9.8 billion in November 2024, while inbound shipments of petroleum and crude also decline by 11.3 percent to $14.12 billion.

Agrawal said that merchandise and services exports stood at around $29 billion, higher on-year in April-November of the current fiscal. "November has evened out our losses in October," he said.

Services exports are seen growing from $32.11 billion to $35.86 billion, while imports rose slightly to $17.96 billion in the reported month from $17.25 billion in November 2025.

India’s total exports (merchandise and services combined) for November 2025 is estimated at $73.99 billion, a growth of 15.52 on year, while overall imports is seen at $80.63 billion, a contraction of 0.60 percent during the same period.

Therefore, overall trade deficit is seen at a lower $6.6 billion in November 2025 from $17.1 billion in the same month last year.

Cumulatively, merchandise exports during April-November 2025 was $292.1 billion, as compared to $284.6 billion on-year, registering a growth of 2.6 percent, while imports stood at $515.21 billion versus $487.93 billion during the same period in 2024.

This led to a merchandise trade deficit of $223.13 during April-November 2025, higher than 203.33 billion during April-November 2024.

Merchandise and services exports during April-November 2025 is estimated at $562.13 billion, versus $533.16 billion on-year, up 5.4 percent.