Explainer: Why India’s Exports Surged in November Despite Tariffs

What Happened?

India’s exports surged strongly in November, even as higher tariffs continued to affect global trade.
According to a recent report by Indian Express, India’s exports witnessed a sharp rise in November 2025, with merchandise shipments growing by nearly 19 to 20 per cent year-on-year to about $38 billion. It is the strongest performance in several years. The recovery came despite challenging global trade conditions, such as higher tariffs imposed by the United States. Interestingly, Export growth was spread across sectors such as engineering goods, electronics and pharmaceuticals, indicating a broad-based demand. Notably, shipments to the US rose strongly even as duties on some Indian products climbed to nearly 50 per cent, helping reduce India’s trade deficit to around $24 billion. The strong showing highlighted the resilience of Indian exporters, their increasing diversification across products and markets, and their ability to remain competitive amid rising trade barriers and volatile global uncertainty

Why It Matters?

The surge shows India’s growing resilience and competitiveness in global markets.

India’s recent export performance highlights a growing resilience and competitiveness in global markets, even as global uncertainty persists. A strong uptick in merchandise exports with November 2025 shipments around 20 per cent higher year-on-year indicates India’s ability to sustain demand across diverse product categories and geographies, despite challenges of high tariffs. Broader data for the first half of the 2025-26 fiscal year shows India achieving its highest-ever export levels, underscoring structural gains in the country’s export ecosystem, supported by improved logistics, policy incentives and market diversification. This resilient export momentum reinforces India’s standing as a reliable global supplier and signals rising competitiveness on the world stage amid ongoing uncertainties in international trade.

Significant Reasons Behind the Surge

Strong Global Demand

Key markets continued to buy Indian goods despite tariff pressures.

Strong global demand for Indian goods remained a significant driver of export growth in November 2025, even as higher tariffs in important markets tested exporters’ resilience. A report by whalesbook mentioned that merchandise exports jumped nearly 19–20 percent year-on-year to about $38 billion. It was led by strong shipments of engineering goods, electronics and pharmaceuticals to diverse destinations such as the United States, UAE, Europe, China and other partners. Exports to the US, India’s largest single market, rose over 20 percent despite steep tariff barriers, underscoring that major trading partners continued to buy Indian products in substantial quantities. Analysts attribute this sustained demand to India’s expanding global market reach, diversified export base and competitive pricing, which helped offset the impact of tariff pressures and supported broader trade momentum.

Diversified Export markets

Indian exporters reduced dependence on a few countries and expanded to new markets.
Indian exporters have actively expanded their global footprint, reducing reliance on just a few traditional destinations and knocking into diverse international markets to sustain growth. A latest report by the Economic times cited that exports are no longer for the markets like the US, instead, India is seeing rising demand from the UAE, China, Vietnam, Japan, Bangladesh, Sri Lanka and Nigeria, among others, helping to spread risk and boost overall shipments.

This strategic diversification has been highlighted by trade bodies as a significant factor supporting export resilience, especially amid tariff pressures in some established markets. By expanding into newer regions such as Brazil, South Africa and Saudi Arabia and pursuing trade agreements with partners around the world, Indian exporters are strengthening their global presence and creating fresh opportunities for growth despite traditional trade manners.

Competitive Pricing

A weaker rupee made Indian products cheaper and more attractive overseas.
Another report by The Economic Times stated that a weaker Indian rupee in 2025 helped make Indian goods more affordable and attractive in international markets, providing an additional boost to export competitiveness even as global tariff pressures persisted. As the rupee traded near multi-year lows against the US dollar, Indian exporters found that foreign buyers could effectively purchase more with each dollar, helping sustain demand for key sectors such as engineering goods, pharmaceuticals and electronics. While a softer currency can raise the cost of imported inputs, economists note that its effect in reducing export prices in foreign currency terms supported India’s merchandise shipments at a time when global trade conditions were challenging. This dynamic, combined with strong global demand and diversified market reach, contributed to the continued strength of India’s exports in November 2025.

Sectoral Strength

Engineering goods, pharmaceuticals, electronics, and chemicals led export growth.

India’s export surge in November 2025 was strengthened by strong performances across several key sectors, highlighting the diversified strength of the country’s merchandise exports. Engineering goods, traditionally India’s largest export category, witnessed robust growth and remained a major contributor to overall shipments, whereas electronic goods recorded particularly sharp increases, reflecting rising global demand for Indian‑manufactured tech products. Pharmaceuticals continued to be a reliable export driver, highlighted by steady international demand for affordable medicines, and chemicals also contributed significantly to the broad-based export expansion. Together, these sectors helped propel India’s merchandise exports higher despite global trade challenges, projecting not just volume gains but also an improvement in the composition and competitiveness of India’s export basket.

Supply Chain Reliability

India emerged as a dependable supplier amid global disruptions.

India has increasingly emerged as a dependable supplier in global supply chains, even amid widespread disruptions and shifting trade patterns in 2025. Governments and industry partners around the world have recognised India’s strategic role in strengthening supply chain security, particularly in critical areas such as pharmaceuticals and technology components, with the United States referring to India as a highly strategic potential partner in supply chain security discussions. This growing trust reflects India’s ability to deliver consistent shipments of key goods from medicines to electronics at a time when many countries are seeking alternatives to mitigate risks from geopolitical tensions and logistics bottlenecks. By maintaining steady export flows despite global uncertainties, India’s supply chain reliability has helped reinforce its position as a dependable source of goods for international markets

In conclusion, India’s export growth in November 2025 reflects a combination of strong global demand, diversified markets, competitive pricing, sectoral strengths, and reliable supply chains. Despite global trade uncertainties and high tariffs in key markets, Indian exporters have demonstrated resilience and adaptability, strengthening the country’s position as a reliable and competitive player in international trade. If this momentum continues, India is well-placed not only to sustain its export growth but also to enhance its long-term global economic influence.