India goods exports rise despite U.S. tariffs

India's goods exports experienced a significant boost in November, climbing 19% year-on-year to reach $38.13 billion. This growth occurred even with existing tariffs imposed by the United States.

The nation's trade with the U.S. showed marked improvement. Exports to the U.S. increased by 22.6% in November, totaling $6.98 billion, surpassing the $6.31 billion recorded in the previous month. This is a notable turnaround from October and September, when exports to the U.S. had decreased by 8.6% and 11.9% respectively.

Furthermore, India's overall exports of goods and services also saw an increase, rising by 15.52% in November to $73.99 billion.

The merchandise goods trade deficit in India decreased substantially in November, falling to $24.5 billion from a record high of $41.7 billion in October. This figure is also lower than the $32 billion predicted in a Reuters poll.

Several sectors contributed to the export growth, including electronics, gems and jewelry, engineering goods, and ready-made textiles.

It is worth noting that in August, the U.S. had imposed additional tariffs of 25% on certain Indian imports, bringing the total duties to as high as 50%. These were among the highest tariffs imposed by Washington, particularly affecting textiles, gems and jewelry, and marine products.

According to Rajeev Juneja, President of PHDCCI, an Indian industry body, India's positive export growth with 14 out of its 20 major trading partners, despite global challenges, demonstrates the increasing diversification and resilience within its external trade.

Trade negotiations between the U.S. and India have been ongoing for several months, with both sides showing signs of flexibility recently. U.S. President Donald Trump has hinted at potentially reducing tariffs on Indian goods.