India experienced a significant boost in its total goods exports for November, marking a 19% increase from the previous year, reaching $38.13 billion. This growth was driven by a notable improvement in trade with the United States.

The country’s merchandise goods trade deficit, which had soared to an all-time high of approximately $41.7 billion in October, contracted to $24.5 billion in November. This figure surpassed the expectations of a Reuters poll, which had predicted a deficit of $32 billion.

Exports from India to the U.S. experienced a remarkable rise of 22.6% in November, totaling $6.98 billion. This figure exceeded the $6.31 billion recorded in the previous month.

In contrast, India’s exports to the U.S. had seen declines of 8.6% in October and 11.9% in September, indicating a significant rebound in November.

India’s exports of goods and services for November were up 15.52% at $73.99 billion.

Exports of electronics, gems and jewelry, engineering goods, and even readymade textiles improved in November as compared to a year ago.

In August, the U.S. imposed an additional 25% tariff on Indian imports, raising total duties to as high as 50%, among the steepest imposed by Washington on its trading partners, with textiles, gems and jewelry, and marine products being hit the hardest.

“Despite global headwinds, India registered positive export growth with 14 out of its 20 major trading partners, reflecting increasing diversification and resilience in external trade,” said Rajeev Juneja, President of India industry body PHDCCI.

Trade negotiations between the U.S. and India have been underway for months, but a deal has been elusive so far. Both sides have begun to soften their stance, with U.S. President Donald Trump hinting at reducing tariffs on India.

Reaching out to Washington, New Delhi has increased oil and gas purchases from the U.S. to reduce the trade surplus it enjoys with Washington. The country is also expected to purchase farm products from the U.S.