India Faces Record Trade Deficit as Imports Surge in November

India recorded its largest-ever monthly trade deficit in November at USD 37.84 billion, driven by increasing imports. While merchandise exports were USD 32.11 billion, imports hit USD 69.95 billion. Overall exports rose 9.6%, while exports of goods dropped, signaling challenges for the government’s USD 800 billion target.

India's trade landscape saw a significant shift in November, with the country registering its largest monthly trade deficit to date. The deficit reached USD 37.84 billion, largely due to a sharp rise in imports compared to exports, as per data from the commerce ministry released on Monday.

Merchandise exports for the month stood at USD 32.11 billion, overshadowed by imports totaling USD 69.95 billion. Despite a year-on-year rise of 9.6% in overall exports, combining both merchandise and services, the decline in goods exports highlighted persistent challenges, bringing India's ambitious target of USD 800 billion under scrutiny.

From April to November, India's total exports rose by 7.6%, reaching USD 536.25 billion compared to USD 498.33 billion in the previous year. The government continues to strive towards reducing import dependency through measures like the Production Linked Incentive (PLI) scheme, aiming to increase competitiveness in global markets.

(With inputs from agencies.)