India’s merchandise exports surged 19.37% year-on-year in November to reach $38.13 billion, the highest level in a decade.
The whopping figure comes even as US tariffs remain punitive.
The sharp rebound reversed October’s decline and compressed the nation’s trade deficit to $24.53 billion from a record $41.68 billion.
Exports to the United States climbed 21% to $6.92 billion, demonstrating that Indian exporters are holding their ground despite facing tariff walls as high as 50%.
The resilience signals a broader reshaping of global supply chains and suggests that India’s diversification strategy is beginning to yield results.
India’s rising exports: Numbers, sectors and drivers
India’s November performance was underpinned by strength across multiple fronts.
The goods exports of $38.13 billion reflect solid demand in electronics, engineering products, ready-made textiles, and gems and jewelry, sectors that comprise the backbone of India’s export machine.
Combined goods and services exports reached $73.99 billion, up 15.5% year-on-year, while the eight-month cumulative (April-November) showed exports growing 2.62% to $292.07 billion.
Commerce Secretary Rajesh Agrawal told reporters that the November figures “evened out the losses we took in October,” noting that November exports represent the strongest output in the last ten years.
The improvement was driven in part by a dramatic contraction in gold, oil, and coal imports, which fell sharply from October’s record levels.
That import reduction was mechanical as gold imports dropped about 60%, but it underscores how government policy and business decisions are reshaping the trade picture.
Sector-wise, engineering goods remain a workhorse, with electronics benefiting from Production Linked Incentive schemes that have shifted smartphone manufacturing capacity to Indian shores.
Basmati rice, high-value pharmaceuticals, and specialty textiles also posted healthy increases.
Government support has included an Export Promotion Mission worth $2.81 billion to strengthen competitiveness and a moratorium on repayment obligations for exporters hit hard by tariff costs.
Major global implications
The puzzle is why exports are rising when tariffs are so steep.
The answer lies in a multi-pronged response that goes well beyond passive acceptance.
Indian exporters are actively shifting product mix toward higher-margin, value-added goods that can absorb tariff costs more easily.
They are redirecting volumes to emerging markets like the UAE, Japan, Singapore, and the Netherlands, which have broadened the buyer base and reduced dependence on the US.
Commerce Secretary Agrawal acknowledged that exporters are absorbing losses to retain long-standing US buyer relationships.
But he emphasized ongoing negotiations for a bilateral trade agreement that could ease tariff pressure.
Both sides appear to be moving closer to a compromise. Trump has publicly flagged the possibility of lowering tariffs on Indian goods, and New Delhi has signaled willingness to buy more US oil, gas, and agricultural products.
The structural implication is also substantial.
Supply chain managers worldwide are evaluating whether to nearshore production to India as an alternative to China, where US tariffs run even higher.
India’s competitive wages, technical workforce, and growing manufacturing infrastructure under the Make in India initiative make that shift plausible.
If sustained, this rebalancing could cement India’s role as a supply-chain beneficiary of trade fragmentation.
The post India’s goods exports rise despite US tariffs: what this means for global trade appeared first on Invezz
