By R Anil Kumar
Bengaluru, December 17. India’s exports surged by nearly 20 percent in November 2025, marking the fastest growth in three years despite the escalating US trade war under President Donald Trump. Goods exports reached $38.13 billion, a 19.4 percent rise year-on-year, reversing October’s 11.8 percent decline to $34.38 billion.
This resilience comes amid steep US tariffs, including an additional 25 percent on Indian goods, pushing total duties to 50 percent in retaliation for New Delhi’s purchases of Russian oil.
On a brighter note, imports fell by 1.88 percent, particularly in gold, oil, and coal, narrowing the trade deficit to $24.5 billion—the lowest since June. October’s deficit had swelled to $41.68 billion. The Commerce Ministry highlighted engineering goods, electronics, and pharmaceuticals as key drivers of this export boom.
Exports to the United States, India’s top destination, grew 22 percent to around $7 billion despite the tariffs. Sectors like engineering, electronics, jewellery, gems, and pharmaceuticals performed strongly. Commerce Secretary Rajesh Agrawal noted that India has “held fort” on US exports.
Shipments to China exploded by 90 percent to $2.2 billion, with electronics and engineering goods leading the charge. Growth also stemmed from Spain, the United Arab Emirates, and Tanzania. This diversification reflects New Delhi’s strategy to reduce US reliance amid global trade disruptions.
Economist Sambit Bhattacharyya from the University of Sussex explained that many booming exports evade tariffs. Electronics, pharmaceuticals, tea, coffee, spices, and food items are exempt. Traders anticipate further relaxations as India and the US negotiate a trade deal.
Optimism persists among US buyers for Indian suppliers’ competitiveness. In November, India signed a pact for state firms IOC, BPCL, and HPCL to import 2.2 million metric tonnes of US LPG annually—10 percent of total needs. Bhattacharyya expects average tariffs to drop with more exemptions.
Uncertainty lingers over US-India ties, as India continues buying discounted Russian oil despite Trump’s claims of an agreement to halt. New Delhi resists opening agriculture and dairy sectors, prioritising farmer protection against US demands for market access.
India is actively diversifying. In July 2025, it inked a Comprehensive Economic and Trade Agreement with the UK, slashing tariffs. Last year’s Trade and Economic Partnership with EFTA nations—Switzerland, Norway, Iceland, and Liechtenstein—linked markets for investments.
Talks proceed with Mexico to counter its 50 percent tariff hikes on Indian imports from January, seen as appeasing Washington. India is also negotiating with Oman and eyeing Eurasian and Central Asian markets, per Bhattacharyya.
A weaker rupee bolstered exports by offsetting tariff impacts on price competitiveness. Year-on-year growth benefits from a low base: November 2024 suffered from the Red Sea crisis, hampering US-bound shipments and making 2025 figures appear robust.
Other nations mirror India’s resilience. China posted a $1 trillion trade surplus in 2025, redirecting exports to Europe, Southeast Asia, and beyond despite US tariffs peaking at 145 percent before easing. EU-bound exports rose 14.8 percent in November, with Southeast Asia up 8.2 percent.
High-tech Chinese goods grew 5.4 percent faster than overall exports in the first 11 months. Vietnam’s US trade surplus hit $121.6 billion despite 20 percent tariffs, with November exports to America jumping 22.5 percent—outpacing other markets’ 15.1 percent.
India’s export strategy underscores adaptability in Trump’s trade wars. By leveraging exemptions, forging new pacts, and targeting non-US markets, New Delhi has not only weathered tariffs but thrived, setting a model for emerging economies.
(With Inputs from International Agency Report)
