Insights into India’s Global Trade Leadership
India’s export sector demonstrated significant strength, with total exports rising by 15.52% from an estimated $64.05 billion in November 2024 to $73.99 billion in November 2025. This surge signifies India’s strengthening position in international trade, driven by robust domestic production, strategic policy interventions, and evolving global demand. The analysis covers key drivers, sectoral performance, and implications for India’s economic future, focusing on the journey from November 2024 to November 2025.
Setting the Stage: India’s Trade Performance in November 2024
In November 2024, India’s total exports (merchandise and services) were estimated at $67.79 billion, a 9.59% increase compared to November 2023.
Merchandise Exports
Stood at $32.11 billion, a slight contraction from November 2023 ($33.75 billion), primarily due to decreased petroleum exports. However, non-petroleum merchandise exports grew by 7.75% to $28.40 billion, indicating strength in the manufacturing base.
- Key growth sectors: Electronic goods (+54.72% to $3.47 billion), Engineering goods (+13.75% to $8.90 billion).
- Other contributors: Rice, marine products, ready-made garments.
Services Exports
A standout performer, estimated at $35.67 billion, a 27% increase over November 2023 ($28.11 billion). For the first time that year, services exports outpaced goods exports, largely driven by the IT sector.
Trade Deficit in 2024
The merchandise trade deficit widened to $37.84 billion (from $27.14 billion in November 2023), influenced by a surge in gold imports and a 27.47% year-on-year increase in total imports to $87.63 billion.
Decoding the November 2025 Export Surge: A Record-Breaking Performance
The total exports in November 2025 reached an estimated $73.99 billion, a 15.52% growth from $64.05 billion in November 2024.
Merchandise Exports
Surged by 19.37% to $38.13 billion, marking a 10-year record high for November.
- Key Drivers of Merchandise Export Growth:
- Engineering Goods: Increased by nearly 24% to $11.01 billion.
- Electronic Goods: Jumped approximately 39% to $4.81 billion, boosted by ‘Make in India’ and PLI schemes.
- Gems and Jewellery: Rose by around 28%.
- Drugs and Pharmaceuticals: Grew by nearly 21%.
- Petroleum Products: Contributed positively.
Services Exports
Estimated at $35.86 billion, maintaining strong performance.
Trade Deficit Narrowing
The overall trade deficit decreased substantially to $6.64 billion (from $17.06 billion in November 2024). This was due to strong merchandise export growth and a slight moderation in merchandise imports to $62.66 billion (compared to $63.87 billion in November 2024). Total imports in November 2025 were $80.63 billion, a marginal decrease of 0.60% year-on-year.
Catalysts Behind India’s Consistent Export Momentum
The export growth is attributed to a confluence of strategic policy interventions, dynamic domestic industry, and an evolving global trade environment.
Government Initiatives and Policy Support
- ‘Make in India’ Initiative: Promotes domestic production and competitiveness.
- Production-Linked Incentive (PLI) Schemes: Incentivize manufacturers across sectors, benefiting electronics, pharmaceuticals, and automotive components.
- Aggressive Trade Agreements: Pursuit of new FTAs and CEPAs to open markets and reduce barriers.
- Logistics and Infrastructure Improvement: Initiatives like the National Logistics Policy enhance efficiency.
- Export Promotion Councils (EPCs): Facilitate market access and promote ‘Brand India’.
Adapting to Global Demand and Market Diversification
India has capitalized on renewed global economic activity and supply chain diversification by international buyers. It has strengthened traditional markets and diversified into new regions and product categories, integrating into global value chains.
Enhancing Competitiveness and Embracing Digital Transformation
Indian industries are investing in R&D, advanced manufacturing technologies, and quality improvement. Digital transformation has boosted services exports, particularly in IT and IT-enabled services.
Sectoral Deep Dive: Key Contributors to India’s Export Success
- Electronic Goods: Staggering growth of approximately 39% to $4.81 billion in November 2025, driven by PLI schemes and integration into global value chains.
- Engineering Goods: Accounted for the largest share of merchandise exports, with a nearly 24% increase to $11.01 billion, highlighting robust manufacturing capabilities.
- Drugs and Pharmaceuticals: Nearly 21% growth, reinforcing India’s role as the ‘Pharmacy of the World’ with high-quality, affordable medicines.
- Gems and Jewellery: Exports rose by approximately 28%, showcasing India’s craftsmanship and sophisticated processing industry.
- Agricultural and Marine Products: Strong performance in rice exports and sustained demand for marine products due to India’s coastline and processing capabilities.
- Services Exports: Maintained strong performance at $35.86 billion, with IT and IT-enabled services (ITES) being globally renowned for talent, cost-effectiveness, and quality.
Addressing Challenges and Charting India’s Export Future
To sustain export momentum, India must address several challenges:
Geopolitical Uncertainties and Trade Protectionism
- Diversify export destinations.
- Strengthen trade relationships and participate in multilateral forums.
- Mitigate non-tariff barriers by adapting to evolving standards.
Enhancing Supply Chain Resilience and Infrastructure
- Invest in ports, airports, roads, and rail networks.
- Develop multimodal logistics parks and cold chain infrastructure.
- Build robust domestic supply chains.
Managing Inflationary Pressures and Input Costs
- Manage input costs through fiscal and monetary policies.
- Support local sourcing of critical inputs.
- Explore targeted subsidies for raw materials.
Fostering Innovation and Skilling the Workforce
- Increase R&D investment in emerging technologies.
- Encourage industry-academia collaboration.
- Equip the workforce with relevant skills through training and education reforms.
- Empower MSMEs with training in international trade and digital marketing.
Policy Recommendations for Sustained Export Growth
- Deepen and implement comprehensive trade agreements.
- Strengthen export credit and insurance facilities.
- Further digitize trade processes and customs clearances.
- Promote green exports and sustainable manufacturing.
- Develop targeted market promotion strategies for high-growth products and emerging markets.
Conclusion: India’s Resilient March Towards Global Trade Leadership
The period from November 2024 to November 2025 showcases India’s export sector’s resilience and growth, with a 15.52% surge in total exports to $73.99 billion. This achievement is driven by diversified sectors like electronics, engineering, pharmaceuticals, and services, supported by proactive government policies (‘Make in India’, PLI schemes), new trade agreements, and a focus on innovation and quality. The significant narrowing of the trade deficit in November 2025 highlights the improving balance of India’s external trade. By addressing challenges like geopolitical shifts and investing in infrastructure, innovation, and workforce skilling, India is poised to solidify its position as a leading global economic force, ensuring sustained upward momentum in its export trajectory.
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