Commerce and Industry Minister Piyush Goyal has indicated that India's merchandise exports are set to rebound in November, recovering from a sharp contraction experienced in October. Speaking at the CII India Edge 2025 event in New Delhi on Wednesday, Goyal stated that preliminary data suggests a significant increase in exports during November, enough to offset the previous month's decline. Official figures are expected to be released on December 15.
In October, merchandise exports had contracted by 11.8%, primarily due to high tariffs imposed by the US. This dip contributed to a widening of India's trade deficit to a record $41.68 billion in that month, exacerbated by a sharp rise in gold imports. However, Goyal reassured that the underlying strength of the Indian economy remains intact.
"Merchandise exports went down in October. Incidentally, November has gone up by a greater amount than what went down in October. If I aggregate October and November, there is growth in merchandise exports despite the global turmoil,” Goyal said. He pointed out that despite global economic uncertainties, India's export performance is showing resilience.
Goyal's comments come against the backdrop of recent data indicating a slowdown in the manufacturing sector. The HSBC India Manufacturing Purchasing Managers' Index, compiled by S&P Global, fell to 56.6 in November from 59.2 in October, marking the slowest expansion since February. Analysts suggest that higher US tariffs may be weighing on demand, contributing to this slowdown.
The Minister emphasized the importance of innovation and technology in driving India's manufacturing sector towards the goal of Viksit Bharat 2047. He also highlighted the need for India to strengthen sectors where it has a competitive edge while reducing dependence on vulnerable areas. Goyal suggested that India should closely study its import patterns to identify sectors where domestic value addition can be rapidly increased, advocating for targeted incentives and closer alignment with global demand trends.
Goyal also addressed concerns about the rupee, which recently hit a record low against the US dollar. He stressed that the broader economy remains strong, with an 8.2% growth in the second quarter, inflation at its lowest in recent months, and robust foreign exchange reserves.
Furthermore, Goyal mentioned that India is actively pursuing deeper integration with global trading partners, hinting at upcoming announcements regarding successful engagements with major economies. India is currently negotiating Free Trade Agreements (FTAs) with key countries and regions, including the European Union (EU), US, New Zealand, Oman, Chile, and Peru.
In related news, Goyal stated that discussions on a Free Trade Agreement with the Russia-led Eurasian Economic Union (EAEU) are set to commence. The EAEU includes Armenia, Belarus, Kazakhstan, and Kyrgyzstan. He also indicated that the government would soon release guidelines for the interest subsidy scheme for exporters and that the recently approved ₹25,060 crore Export Promotion Mission would include targeted schemes to help landlocked states enhance their competitiveness in the export sector.
