India's export sector has shown a significant rebound in November, effectively countering a sharp contraction witnessed the previous month. Commerce and Industry Minister Piyush Goyal announced the positive turnaround on Wednesday, signaling a regained momentum for outbound shipments despite ongoing global economic volatility.
Merchandise Exports on a Strong Wicket
While refraining from disclosing specific figures ahead of the official data release scheduled for December 15, Minister Goyal provided an optimistic assessment. He stated that merchandise exports strengthened across various categories in November. "Merchandise exports are also on a strong wicket. Merchandise exports went down in October. Incidentally, November has gone up by a greater amount than what went down in October," Goyal explained to reporters.
He further emphasized that the cumulative performance for the two-month period remains positive. "If I aggregate October and November, there is growth in merchandise exports despite the global turmoil," the Minister affirmed. This recovery is crucial, given that October had seen a contraction of 11.8 per cent, with exports falling to $34.38 billion, partly driven by higher US tariffs.
Broader Economic Resilience and Trade Engagements
Addressing concerns related to the rupee's slide to a historic low of 90.15 against the US dollar, Goyal pointed to underlying economic strength. He highlighted a robust GDP growth of 8.2 per cent in the second quarter, which surpassed estimates, alongside record-low inflation and strong foreign exchange reserves.
On the trade front, the Minister outlined India's proactive strategy for deeper global integration. The government is actively pursuing free trade agreement (FTA) negotiations with several key partners, including the United States, the European Union, New Zealand, Oman, Chile, and Peru. "In the months and days to come, you will hear a lot more about our own successful engagements with many of our trading countries," Goyal hinted, suggesting imminent progress on several fronts.
Trade Deficit and Fiscal Year Overview
The export contraction in October had widened India's trade deficit to a record $41.68 billion, exacerbated by a surge in gold imports. For the April–October period of the current fiscal year, provisional data indicates a mixed picture. Exports saw a marginal increase of 0.63 per cent to $254.25 billion, while imports grew by 6.37 per cent to $451.08 billion.
The November rebound, therefore, comes as a welcome development for policymakers aiming to bolster external trade balances. The minister's comments project confidence in the economy's fundamental levers—capital inflows, infrastructure investment, and consumer spending—remaining positive and supportive of sustained growth.
