India's trade deficit narrowed to a five-month low of $24.53 billion in November, down from $31.73 billion in October, as a sharp fall in imports outpaced modest export growth – a development that comes at a critical moment for India's trade negotiations with the US.
Driven largely by lower imports of crude oil, gold and fertilizers, the improvement reflects softer global prices and reduced volumes. Exports edged higher, supported by shipments of engineering goods and electronics.
The narrowing deficit is significant as New Delhi seeks to ease trade tensions with Washington and push for relief from US tariffs imposed on Indian goods, some of which were linked to India's purchases of Russian oil. A smaller trade gap could bolster India's position as talks continue on a potential bilateral trade arrangement aimed at stabilising commercial ties.
"India has held fort on US exports despite tariffs," commerce secretary Rajesh Agrawal told Reuters, highlighting resilience in shipments to the American market even as tariff pressures persist.
Alongside negotiations with the US, India is expanding trade ties with partners including Russia and the EU, seeking to diversify markets and reduce vulnerability to policy shifts in any single economy.
Government data showed services exports were estimated at $35.86 billion in November against imports of $17.96 billion, pointing to a services trade surplus of around $17.9 billion, according to Reuters calculations. The figures add to a closely watched set of indicators as India manages trade relations with major partners, including the United States.