India’s trade deficit narrows to five-month low

India’s merchandise trade deficit declined to a five-month low of $24.53 billion in November, driven by lower imports of gold, oil, and coal, while exports to the US picked up, government export and import data released on Monday showed.

Indian merchandise exports to the US rose nearly 10% month-on-month to $6.92 billion in November, the data showed.

Economists had expected the November trade deficit to be $32 billion, according to a Reuters poll, compared with a record $41.68 billion in the previous month.

“India has held fort on the US exports despite tariffs,” said Rajesh Agrawal, India’s commerce secretary, adding that the decline in imports was due to a fall in gold, oil, and coal imports.

Overall merchandise exports rose to $38.13 billion in November from $34.38 billion in October, while imports fell to $62.66 billion from $76.06 billion.

Indian exports to the US rose 21.3% year-on-year in November, to $5.71 billion, up from $5.71 billion a year earlier.

In October, exports to the US fell nearly 9% year-on-year to $6.31 billion, down from $6.91 billion a year earlier, though they were higher than $5.47 billion in September.

Indian Prime Minister Narendra Modi’s administration has rolled out measures, including consumer tax cuts, an export promotion package, and labour reforms, to cushion the economy from the impact of steep US tariffs.