NEW DELHI: India’s exports grew at their fastest pace in over three years, rising 19.4% to $38.1 billion in Nov on the back of a jump in shipments to the US and China. With imports falling 2% to $62.7 billion, the trade deficit narrowed to $24.6 billion, the lowest level since June.
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India’s exports to the US are estimated to have increased 22.6% to $7 billion in Nov despite the impact of 50% additional tariffs, while the value of consignments going to China rose 90% to $2.2 billion. In fact, in November, China overtook the Netherlands as the third largest export destination, although the European country was marginally ahead during April-November.
“Despite the tariffs we have been able to hold our exports and imports are also growing (38% to $5.3 billion), which is a good thing for India-US trade,” commerce secretary Rajesh Agrawal told reporters.
Aditi Nayar, chief economist at ratings agency ICRA said that the rise in exports and fall in imports was due to supply normalisation after the holidays and decreased demand post the festive season.
The strong export performance in Nov came on the back of a 12% decline in Oct, which was attributed to US tariffs. “Nov export growth has more than made up for Oct,” commerce and industry minister Piyush Goyal said ahead of the data release. Agrawal said that the numbers indicated that in several sectors, exporters were seeking to diversify the markets. The Nov resurgence was led by strong performance across sectors which included engineering goods, electronics, gems and jewellery, pharma, chemicals, oil products and most segments of the textiles sector. Five of the 30 major sectors – rice, oil seeds, plastics, jute products and carpets – registered a fall during the month.
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On the imports front, gold declined 59% in Nov to $4 billion, compared with nearly $10 billion a year ago, while crude petroleum (11.3% decline to $14 billion) and vegetable oil (20% drop to $1.5 billion) also fell. The major sectors registering an increase included electronics (16% to $8.8 billion), silver (125% to $1.1 billion) and pearls and precious and semi-precious stones (90% to $1.8 billion).
“…diversification of export markets, along with the continued resilience of several key sectors, has played a crucial role in supporting export growth. With sustained policy support, enhanced logistics efficiency, and access to competitive export financing, India’s exports are well-positioned to maintain this positive trajectory in the coming months,” Fieo chief S C Ralhan said in a statement. During Nov, services exports are estimated to have increased 11.9% to $35.9 billion, while imports rose 4% to $18 billion.
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