Even though America has imposed 50 percent tariff on India, in response to this, India has established new trade relations with many countries and increased its exports. Its effect was also visible in the November figures. In the month of November, the country’s exports not only reached a record level, but also broke the 10-year record. On the other hand, there has been a decline in the country’s trade deficit in the month of November. The trade deficit was estimated at 30 billion dollars, which was less than the actual trade deficit figure of 25 billion dollars. Which is the lowest in 5 months. Apart from this, there has also been an increase in exports to America. Let us also tell you what kind of data has been seen in the government figures.
10 year export record broken in November
According to government data released on Monday, India’s exports increased by 19.37 percent to US $ 38.13 billion in November, while imports declined by 1.88 percent to US $ 62.66 billion. Commerce Secretary Rajesh Aggarwal said that the exports in November compensated for the losses incurred in October this year. He said that the export of US$ 38.13 billion in November is the highest in the last ten years. Whereas in the month of October, India’s exports were 34.38 billion dollars while imports were seen at 76.06 billion dollars. Overall, exports grew by 2.62 per cent to US$292.07 billion from April to November, while imports increased by 5.59 per cent to US$515.21 billion during the eight months.
Trade deficit also decreased
There has also been a reduction in trade deficit in the month of November. This is the first time in 5 months that there has been a decline in trade deficit. If we look at the figures, the country’s trade deficit came down to US$24.53 billion in the month of November. According to a Reuters survey, economists had expected the trade deficit to be $32 billion in November, whereas last month this deficit was a record $41.68 billion. Overall, the country’s trade deficit from April to November has reached $223.14 billion. Commerce Secretary Rajesh Aggarwal said that despite the tariffs, India has maintained its strong position in terms of exports from America. He further said that the decline in imports is due to decline in imports of gold, oil and coal.
India’s exports to America
According to the data, Indian goods exports to the US increased by nearly 10 percent month-on-month to $6.92 billion in November. Whereas compared to last year, there has been an increase of more than 21 percent, which was more than 5.71 billion dollars a year ago. In October, exports to the US fell nearly 9 percent from a year earlier to $6.31 billion, down from $6.91 billion a year earlier, although it was up from $5.47 billion in September.
The central government has taken several measures including consumer tax cuts, export incentive packages and labor reforms to protect the economy from the heavy impact of American tariffs. Prime Minister Modi spoke to US President Donald Trump after the visit of a US trade delegation last week, as New Delhi seeks relief on key export routes.
Washington is pressuring India to reduce tariff and non-tariff barriers on US goods and open its market to US agricultural products including soybean and sorghum. According to government data, services exports in November are estimated at $35.86 billion and imports at $17.96 billion, indicating a services trade surplus of $17.9 billion, according to Reuters calculations.
