India’s merchandise exports rebounded strongly in November after falling 11.8% in October, pushing the trade gap to a record high. Commerce Minister Piyush Goyal stated that the November bounce outpaced the previous month’s decrease, placing combined October-November exports back into positive territory. He expressed confidence ahead of the official data release on December 15th.
The increase comes after a difficult October, when exports fell to USD 34.38 billion due to lower demand and the impact of additional US tariffs. Gold imports also increased, pushing the trade gap to USD 41.68 billion and raising concerns about external vulnerability. Between April and October, exports increased by only 0.63% while imports increased by 6.37%, putting pressure on the rupee, which fell to a historic low of 90.15 against the US dollar.
Despite these challenges, the government remains optimistic, citing solid GDP growth, lower inflation, consistent capital inflows, and healthy forex reserves. According to Goyal, ongoing free trade negotiations with countries such as the United States, the European Union, New Zealand, Oman, Chile, and Peru are helping to boost India’s exports. The government believes that these agreements will improve India’s global trading position and promote long-term export growth.
