India’s exports rose nearly 20% in November compared to the same month last year, the fastest growth in three years, mainly driven by exports to the United States and China.
The rise comes at a time when many countries are struggling to protect their exports from the impact of high U.S. tariffs introduced by President Donald Trump. President Trump said the United States imposed a 25% tariff on India earlier this year in retaliation for India’s continued purchase of Russian crude oil, bringing the total tariff to 50%.
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The increase in Indian exports in November also comes as China recorded a trade surplus of more than $1 trillion, partly reflecting how global trade flows are being reshaped as a result of the Trump trade war.
Export statistics reported by India’s Ministry of Commerce and Industry this week reflect strong demand for Indian products and a strategy to diversify into new export markets, the ministry said, an approach other countries are also taking to reduce dependence on the United States.
What were India’s exports in November?
India’s merchandise export value was $38.13 billion as of November 2025, an increase of approximately 19.4% from the previous year. This was a reversal after India recorded exports of $34.38 billion in October, down 11.8% year-on-year.
In particular, imports of gold, oil and coal also fell by 1.88%, narrowing India’s goods trade deficit to about $24.5 billion, the lowest level since June. The trade deficit in October ballooned to $41.68 billion.
The main drivers of the export boom include engineering products, electronics and pharmaceuticals, according to the Commerce Department.
Where does India currently send most of its exports?
Despite the new tariffs, exports to the United States, India’s largest single destination, rose 22% in November to about $7 billion.
The healthiest export sectors were engineering, electronics, jewelery and gemstones, and pharmaceuticals.
Commerce Secretary Rajesh Agrawal said at a press conference that “India has stood firm on U.S. exports despite the tariffs.”
Meanwhile, the value of shipments to China soared to $2.2 billion, an increase of 90% from the previous year. China has seen a significant increase in imports from India, with a significant increase in electronics and engineering products.
The Ministry of Commerce added that exports to Spain, the United Arab Emirates and Tanzania were also driving growth.
Why are exports to the US still strong?
Samvit Bhattacharyya, an economics professor at the University of Sussex in the UK, said November’s figures include sales of Indian goods that are not subject to U.S. trade tariffs.
“Exports of electronics and pharmaceuticals from India to the US are increasing and these product categories are exempted from customs duties. In addition, tea, coffee, spices and other food products have also been added to the exempt list, all of which are growing steadily.”
However, analysts also note that the continued strength of exports to the United States suggests that traders expect the United States to eventually ease tariffs on other items as the two countries continue to work towards a trade deal.
For example, in November, New Delhi and Washington signed a long-term agreement for Indian state-owned companies IOC, BPCL and HPCL to buy 2.2 million tonnes of US liquefied petroleum gas (LPG) annually. This is equivalent to 10% of India’s total LPG imports.
“India is working with the US to secure a trade agreement, with average tariffs expected to be reduced and exemptions expanded,” Bhattacharya said.
“Therefore, further concessions from the US side are likely to be expected. US buyers remain optimistic about Indian suppliers and Indian exports remain competitive in the US market.”
Is India also diversifying its exports beyond the US?
yes. Despite some positive signs in terms of exports, uncertainty remains regarding the US-India relationship. The Trump administration claimed earlier this year that India had agreed to stop buying Russian crude oil at a discount, but there has been little sign of that happening.
India has also resisted U.S. pressure to open sensitive sectors such as agriculture and dairy to U.S. imports, insisting it would protect farmers and “not give in” to tariff demands, while President Trump has called for greater market access.
In July this year, India and the UK signed a Comprehensive Economic and Trade Agreement that lowers tariffs. Last year, India also signed trade and economic partnership agreements with the European Free Trade Association countries (Switzerland, Norway, Iceland and Liechtenstein), under which they link markets in exchange for investments.
India is currently in talks with Mexico to counter Mexico’s tariff policies and create new export routes. Mexico’s Senate on Wednesday approved raising tariffs on imports from India and other countries by up to 50% starting in January, a move analysts say is aimed at placating the United States.
Trade negotiations are also underway with Oman.
“India may also be looking at diversifying into Eurasian and Central Asian markets,” said Sussex University’s Bhattacharyya.
Why else does India export so much?
Bhattacharyya said exports were strong in November due to the weak rupee.
“The rupee depreciated against the dollar, partially offsetting the negative impact of tariffs on the price competitiveness of Indian exports,” he said.
“What is reported is year-on-year growth and export value in November 2025 compared to November 2024. November 2024 was the month of the Red Sea crisis, which negatively affected exports to the United States,” he added.
“The export growth figures for November 2025 may therefore appear too optimistic due to the low base.”
Which other countries are exporting well despite U.S. trade tariffs?
China’s exports will continue to grow in 2025, allowing it to record a trade surplus of over $1 trillion.
Earlier this year, the United States imposed 145% tariffs on Chinese goods, then lowered them to facilitate trade negotiations. However, the Chinese government has overcome this conflict by increasing exports to markets outside the United States.
Strong demand for electronics, electric vehicles and rare earth metals from Europe, Southeast Asia and other Asian markets offset a decline in U.S. shipments due to the tariff war.
China’s exports to the European Union also showed strong growth, increasing by 14.8% in November compared to the same month last year, and exports to Southeast Asian countries also increased by 8.2%.
In the first 11 months of 2025, China’s goods surplus increased by 21.7% year-on-year, with high-tech products driving much of the expansion. Shipments in this category grew 5.4% faster than overall exports.
Vietnam also recorded an increase in exports in 2025, with its trade surplus with the United States reaching $121.6 billion in the same period, despite the Trump administration imposing 20% tariffs on its products.
Exports from Vietnam to the United States rose 22.5% year-on-year in November, outpacing the 15.1% growth in shipments to other markets, according to official figures.
Are other countries diversifying away from the United States?
Momentum is building for multilateral and bilateral trade negotiations as countries seek alternatives to the US market.
“Countries are looking to diversify from the US to Asian markets such as China, Japan and ASEAN. Trade agreements are one way to secure trade and reduce trade uncertainty. Encouraging investment and opening markets is also another way to secure trade,” Bhattacharya said.
The EU has concluded trade agreements with Mercosur, Mexico, and Indonesia in Latin America. The agreement includes reducing or phasing out most tariffs on goods, expanding access to export markets for manufactured goods and agricultural products, and addressing environmental and labor issues.
The U.S.’s neighbor to the north, Canada, has also expressed interest in striking a new trade deal under pressure from President Trump’s tariff offensive.
In November, Canada and the UAE signed the Foreign Investment Promotion and Protection Agreement, which aims to promote and protect investment between the two countries, and also agreed to begin negotiations to secure a trade agreement between the two countries.
Canadian Prime Minister Mark Carney has previously said Canada aims to double its exports outside the United States over the next 10 years.
