India’s Trade Deficit Narrows to $24.53 Billion in November
India’s trade deficit narrowed to $24.53 billion in November, helped by a moderation in imports and relatively stable export performance. The improvement marked a reduction from the wider deficit recorded in the previous month, offering some relief to policymakers monitoring external sector pressures.
Officials said the narrowing of the gap was largely driven by a decline in imports, particularly in segments such as crude oil and certain non-essential goods. Lower global commodity prices and softer domestic demand contributed to the reduced import bill during the month.
Exports Remain Under Pressure
Exports remained largely subdued, reflecting ongoing global economic uncertainty and weaker demand from key markets. Sluggish growth in major economies and geopolitical tensions continued to weigh on India’s merchandise exports, especially in sectors linked to discretionary consumption.
Despite these challenges, some resilience was seen in select export categories, supported by diversification efforts and continued demand for value-added products. Trade officials said global conditions remain a key factor influencing export momentum in the near term.
Outlook for External Trade
Economists said the narrowing trade deficit could provide short-term support to the rupee and help manage the current account balance. However, they cautioned that volatility in energy prices and global financial conditions could still impact trade flows in the coming months.
The government continues to focus on boosting exports through policy support, trade agreements, and incentives for domestic manufacturing, while closely tracking import trends to maintain external stability.
