India’s Merchandise Exports Surge in November 2025 Amidst Narrowing Trade Deficit
India's merchandise exports grew by 19.4% to $38.1 billion in November 2025, the highest in a decade for that month. Exports to the U.S. rose by 22.6% despite 50% tariffs, as exporters absorbed costs to maintain market share. Simultaneously, imports fell by 1.9% to $62.7 billion, leading to a narrowed trade deficit. However, experts warn of 'deeper distress' as high tariffs and a depreciating rupee impact MSMEs. The government is considering relief measures like credit guarantees to support exporters facing global headwinds and shifting supply chains.
Key Points
- Merchandise exports reached $38.1 billion in November 2025, a 19.4% year-on-year growth.
- The trade deficit shrank as imports fell to $62.7 billion, though this may indicate slackening domestic demand.
- Exporters to the U.S. are currently absorbing the impact of 50% tariffs, which is unsustainable for the MSME sector.
- The depreciating rupee has provided some offset to tariff impacts but remains a challenge for long-term competitiveness.
Exam Facts
- Exports to the U.S. grew 22.6% to $6.98 billion in November 2025.
- India's merchandise imports fell 1.9% to $62.7 billion in the same period.
- The U.S. has imposed 50% tariffs on Indian merchandise exports.
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