New Delhi, India , December 15, 2025 : The India’s expanding electronics manufacturing base has emerged as a critical buffer against global trade volatility, helping the country narrow its trade deficit sharply in November, even as concerns grow over potential tariff actions by former US President Donald Trump.
According to a Bloomberg India Edition newsletter published on December 15, 2025, India’s trade deficit fell to $18.4 billion in November, down significantly from $25.3 billion in October. The improvement was largely driven by robust electronics exports, particularly smartphones, and a decline in imports from China.
Electronics exports surged 25% year-on-year to $10.2 billion, led by strong global demand for iPhones assembled in India by Apple suppliers Foxconn and Pegatron. This surge helped offset weaknesses in traditional export segments such as gems, jewelry, and petroleum products.
Goods exports to the United States rose 11.4% to $59.04 billion for the fiscal year ending November, reinforcing India’s position as a key alternative manufacturing hub amid shifting global supply chains. At the same time, imports from China declined 5.2% to $13.5 billion, further easing pressure on the trade balance.
Despite renewed rhetoric from Donald Trump on imposing tariffs, India remains relatively insulated due to its $36 billion trade surplus with the US, economists noted. Strategic diversification into electronics, semiconductors, and electric vehicle components, supported by the government’s Production-Linked Incentive (PLI) schemes, has strengthened India’s export resilience.
Analysts expect this momentum to continue, projecting 15% export growth in FY26, as India accelerates its transition from a services-led export model to a goods-driven manufacturing economy. The sustained export performance has also helped bolster India’s foreign exchange reserves to approximately $680 billion, providing additional macroeconomic stability amid global uncertainty.
