Strong Services, Merchandise Exports Aid Trade Balance
New Delhi: India’s foreign trade performance strengthened in November 2025, with exports posting a sharp year-on-year rise and the trade deficit narrowing substantially, supported by robust services shipments and steady merchandise demand. Provisional data released by the commerce ministry showed combined merchandise and services exports at nearly US$74 billion during the month, reflecting strong external demand despite global economic uncertainties.
Merchandise exports in November rose to over US$38 billion, while services exports crossed US$35 billion, underscoring the continued importance of services in cushioning the country’s overall trade balance. Imports during the month remained largely stable at about US$80.6 billion, with merchandise imports easing marginally and services imports inching up, resulting in a significantly lower trade deficit compared with the same month last year.
For the April–November 2025 period, India’s total exports of goods and services stood at US$562.1 billion, registering growth of over 5 per cent from a year earlier. Merchandise exports during the eight-month period were valued at around US$292 billion, while services exports accounted for roughly US$270 billion, highlighting the sustained expansion of India’s services sector in global markets.
Imports for the same period amounted to approximately US$651 billion, leading to an overall trade deficit of about US$89 billion. While the cumulative deficit widened marginally from the corresponding period last year, officials pointed to the improving monthly trend and the stabilisation of import growth as positive indicators.
Non-petroleum exports recorded healthy growth, aided by improved performance in engineering goods, electronics, pharmaceuticals, gems and jewellery, and petroleum products. The data also showed an expansion in non-petroleum and non-gems and jewellery trade, suggesting broader-based export momentum beyond traditional segments.
On the geographical front, exports to key markets such as the United States, China, the United Arab Emirates, Spain and Tanzania increased during the period, reflecting diversified demand conditions. Imports rose from countries including China, the United States, Thailand, Hong Kong and Brazil, driven largely by requirements of industrial inputs, capital goods and intermediates.
While the merchandise trade deficit for the April–November period widened slightly compared with the previous year, the November figures demonstrated that export momentum remained intact and import moderation helped to improve the month’s trade balance. Services trade continued to provide a strong buffer to the merchandise trade gap, with exports supported by information technology, business services and other knowledge-intensive segments. The sustained services surplus remained a key factor in moderating pressures on the overall trade balance.
Economists said the November numbers point to improving trade dynamics, with export growth outpacing imports on a monthly basis. However, they cautioned that global demand conditions, geopolitical developments and commodity price movements will remain critical variables shaping India’s trade outlook in the coming months.
– global bihari bureau
