India’s trade gap in November narrowed marginally from a near three-year high last month as export growth grew and import of certain commodities saw seasonal slowdown. The trade deficit increased 3.1 per cent over last year to $13.83 billion. While the deficit was higher than the same month last year, it has narrowed from $14 billion in October. Japanese brokerage Nomura in a report said, The trade data reflects “a solid export rebound” but with imports still elevated, the deficit narrowed only marginally.

Exports grew after dropping for the first time in 15 months in October. The value of outbound shipments grew 31 per cent over last November to $26.2 billion, particularly from a steep rise in export of engineering and petroleum products. Morgan Stanley Research had reported the trend is similar to that seen in other Asian economies like Korea, China and Taiwan which also saw strong export growth,

Indian exports have been on a downtrend since 2014-15, adversely impacted by a global slowdown, a sharp fall in commodity prices and currency fluctuations. It started recovering in July 2016 and had been on the rise since, but growth was offset by India’s large import bill led by higher import of gold and oil.

Export volume growth in November was at 23.1 per cent, recovering from a 4 per cent decline in October, according to Nomura. "Sector-wise, the pick-up in exports was led by the agriculture products, chemicals, engineering goods and gems & jewellery segments, although growth in labour-intensive exports remains weak, possibly because of working capital issues due to delayed goods and services tax refunds," the report said. Imports in November rose 19.6 per cent over last year to $40 billion. The pace of import growth was faster than that seen in October due to a sharp rise in crude oil prices and the value of inbound shipments of precious stones and pearls.