Imports from UAE, South Africa, and Switzerland surged by over 100% in Novembe

India’s Exports Decline by 4.9% in November, Imports Surge to $70 Billion

India’s outbound shipments to nine of the top 20 export destinations contracted in November, leading to a surprise 4.9 percent export contraction this month, trade data released by the Commerce Department on Monday showed.

In contrast, India’s record goods imports of $70 billion in the same month were driven by triple-digit growth in inward exports from the United Arab Emirates (UAE), South Africa and Switzerland. India imports the bulk of its gold from these three countries. India imported $14.9 billion worth of gold in November.

The contraction in goods exports in November was driven by a decline in exports to the United States, the Netherlands, China and Bangladesh. A fall in petroleum product prices led to a decline in exports to the Netherlands, while economic and political turmoil in China and Bangladesh, respectively, saw exports to neighboring countries contract.

“With the upcoming US tariff hikes against China, India’s imports from China are likely to rise as Beijing tries to push its deflationary pressures by exporting cheaper goods to other economies.

This is something India, along with other Asian countries, is already facing across several commodity categories. Hence, India’s merchandise trade deficit will need to be monitored in the next few months and will require tactful policy responses from the authorities,” CRISIL said in a research note.