India’s exports surge on diversification drive as trade deficit narrows sharply

Driven by diversification, innovation, and sustained efforts to advance trade reforms, India has strengthened its position in global markets, with exports setting new benchmarks despite continued global uncertainty. A strong year-on-year rise from November 2024 to November 2025 underscores India’s growing reputation as a reliable trading partner. It reflects the resilience of its export ecosystem in a volatile external environment.

India’s total exports rose from $64.05 billion in November 2024 to $73.99 billion in November 2025, registering a robust growth of 15.52%. Imports remained broadly stable at $80.63 billion, leading to a sharp narrowing of the trade deficit by 61.07%, from $17.06 billion to $6.64 billion. The performance was supported by high-value commodities, wider global partnerships and policy reforms aimed at achieving a more balanced and globally integrated trade trajectory.

Merchandise exports in November 2025 stood at $38.13 billion, up from $31.94 billion a year earlier, reflecting a growth of 19.38%. Services exports rose to $35.86 billion from $32.11 billion, marking an annual increase of 11.67%. Merchandise exports accounted for 51.53% of total exports, while services contributed 48.47%, highlighting the balanced nature of India’s export growth.

Labour-intensive sectors continued to perform strongly. Readymade garment exports rose by 11.27% to $1.25 billion in November 2025. Several major markets recorded healthy growth, including the UAE, Japan, Germany, Spain and France. At the same time, exports to Egypt, Saudi Arabia, and Hong Kong posted particularly sharp increases, underscoring India’s expanding geographic reach.

Chemical exports also increased, with organic and inorganic chemicals registering a growth of 18.49%. The pharmaceutical sector, often described as the pharmacy of the world, recorded a 20.19% increase in exports, supplying more than 200 countries, including highly regulated markets such as the US, Western Europe, Japan, and Australia. Gems and jewellery exports increased by 27.8%, driven by sustained demand in the US, the UAE, Hong Kong, and Europe.

Petroleum product exports continued to benefit from India’s refining capacity and strategic location, growing by 11.65% in November 2025. Engineering goods exports recorded steady growth, driven by demand from the US, the UAE, Germany, the UK, and Saudi Arabia. The electronics sector also emerged as a major growth driver, with mobile phone exports rising from ₹1,500 crore in 2014–15 to ₹2 lakh crore in 2024–25, supported by the government’s target of building a $500 billion electronics ecosystem by 2030–31.

Export diversification has remained a central policy objective, aimed at reducing dependence on a narrow range of products and markets. Policymakers see diversification as critical to managing geopolitical tensions, demand volatility and supply chain disruptions, while fostering innovation, productivity gains and long-term economic stability. Exports accounted for 21.2% of India’s GDP in 2024, underscoring the importance of external trade resilience as a macroeconomic priority.

India has also accelerated efforts to deepen trade ties through a growing network of free trade agreements. In December 2025, India signed a Comprehensive Economic Partnership Agreement with Oman, granting zero-duty access on over 98% of Oman’s tariff lines and opening new opportunities for labour-intensive sectors, services and professional mobility. This followed the conclusion of a Comprehensive Economic and Trade Agreement with the UK in 2025, as well as earlier agreements with the UAE, Australia, the EFTA countries, and Mauritius.

Alongside concluded agreements, India remains engaged in active negotiations with the EU, the US, ASEAN, Israel, Canada, the GCC and several other partners, reflecting a broader shift in its international economic engagement. These efforts are complemented by domestic measures to boost export competitiveness, including the Export Promotion Mission, labour law consolidation, GST 2.0 reforms, infrastructure upgrades, logistics improvements and production-linked incentives.

Together, these developments point to a steady evolution in India’s export profile. With diversified products, wider markets and a more supportive policy framework, India’s exports are increasingly embedded in global trade networks, even as external risks persist.

Source: PIB