Sat Nov 22 08:07:24 UTC 2025: Summary:

A CRISIL report released on November 22, 2025, reveals that India’s merchandise exports experienced a significant drop of 11.8% year-on-year in October, reaching $34.38 billion. This decline was widespread, affecting key sectors like petroleum products, gems and jewelry, and core exports. Exports to the U.S. also decreased, although the rate of decline improved slightly compared to the previous month. Exports to non-U.S. markets saw an even steeper fall. Despite the export slump, India’s current account deficit is projected to remain manageable due to strong service trade, remittances, and lower crude oil prices. Merchandise imports remained stable. The report also mentions that the recent U.S. tariff cuts on food items could benefit some Indian agricultural exports.

News Article:

Indian Merchandise Exports Plunge in October, CRISIL Report Reveals

Kolkata – November 22, 2025 – A new report by CRISIL (formerly Credit Rating Information Services of India Limited) paints a concerning picture of India’s merchandise exports, revealing an 11.8% year-on-year drop in October, totaling $34.38 billion. This significant decline, the first since August 2024, stems from weaknesses across several crucial sectors, including petroleum products, gems and jewelry, and core exports.

Petroleum product exports experienced a notable reversal, declining by 10.4% compared to a 15.1% growth in September. Core exports also faltered, slipping to a 10.2% decrease compared to a 6.1% growth the previous month.

The report highlights a decrease in exports to the United States, falling 8.6% year-on-year to $6.3 billion. While still a contraction, this represents a slight improvement from the 11.9% decline recorded in September. However, exports to non-U.S. markets fared worse, plummeting 12.5% year-on-year.

There is some optimism on the horizon. The recent announcement by the U.S. to reduce tariffs on 254 food items is expected to positively impact certain Indian agricultural exports, such as tea and spices.

Despite the export woes, CRISIL projects that India’s current account deficit will remain manageable, bolstered by robust service trade, remittances from abroad, and lower crude oil prices. Merchandise imports remained stable at $76.06 billion in October.

Economists are closely watching the situation to determine the long-term impact of these export declines on the Indian economy.

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