Hindi English Translation || Editorial || ​Temporary relief: On trade performance, deeper distress ahead

​Temporary relief: On trade performance, deeper distress ahead

The depreciation (मूल्यह्रास) of the rupee is helping bring down trade deficit (घाटा)

India’s remarkable merchandise (व्यापारिक वस्तुएं, माल) trade performance in November should come as some relief for the government, but should not be the basis for any complacency (आत्मसंतुष्टि). India’s merchandise exports, hit by the stiff headwind of 50% tariffs by the United States, the biggest export destination, unexpectedly grew 19.4% to $38.1 billion in November 2025. This is the highest it has been in any November in the last 10 years. Also, India’s exports to the U.S. grew 22.6% to $6.98 billion in November 2025 as compared to November 2024. This was also 10.7% higher than in October 2024. This is all certainly welcome news, but it hides an element of deeper distress (संकट, कष्ट) that will make itself apparent in the months ahead. While exports to the U.S. recovered in November, exporters say that this is because they are absorbing the hit of the higher tariffs, hoping that they will be short-lived. The other option, of losing customers and trying to win them back later after moderation (संयम, संतुलन) of tariffs, is seen to be harder, at least for now. However, it might soon be the only option. Indian exporters to the U.S., a large chunk (बड़ा हिस्सा, बड़ा भाग) of which are micro, small, and medium enterprises in labour-intensive sectors, cannot continue absorbing the tariff impact for too long. The depreciating rupee is helping offset some of the impact, but India’s tariff differential with competing countries is too big to overcome. It also takes some time for supply chains to reroute. Reports are already coming in that exporters are seeing a significant drop in orders for January.

The trade deficit also shrank because India’s merchandise imports fell 1.9% to $62.7 billion in November 2025. Reducing imports is a tricky topic for India. While it is preferable to reduce import dependence in the medium term, India’s domestic capabilities are not yet robust enough to shoulder the load. Falling merchandise imports, therefore, suggest slackening (To make or become loose or less active; to reduce in speed or intensity) demand. Coming so soon after the Goods and Services Tax rate reductions, this should be monitored carefully by the government. The broad outlines of the government’s Export Promotion Mission show that the government is thinking about how to alleviate the financial stress being faced by exporters. However, the detailed schemes have not been notified yet. These must be expedited (शीघ्रता करना). The government could also perhaps adapt some of its more successful COVID-era relief measures as well. For example, a credit guarantee scheme for exporters will do them more good than the planned moratorium (A temporary prohibition of an activity; a legal authorization to debtors to postpone payment) on loan repayments (पुनर्भुगतान) will. Of course, these troubles will go away once the tariffs issue is resolved, which the government is saying will happen “very soon”. But the decision on this lies with the mercurial U.S. President Donald Trump. As such, the most prudent (विवेकपूर्ण, सावधानीपूर्वक) way forward is to hope for the best but continue preparing for the worst.

Courtesy: The Hindu

Important Word List With Meaning

1.Distress (Noun)

Hindi Meaning – संकट, कष्ट
English Meaning – Extreme anxiety, sorrow, or pain; a state of physical strain or exhaustion.

2.Depreciation (Noun)

Hindi Meaning – मूल्यह्रास
English Meaning – A reduction in the value of an asset with the passage of time, due in particular to wear and tear.

3.Deficit (Noun)

Hindi Meaning – घाटा
English Meaning – The amount by which something, especially a sum of money, is too small; a shortfall.

4.Merchandise (Noun)

Hindi Meaning – व्यापारिक वस्तुएं, माल
English Meaning – Goods to be bought and sold; to promote the sale of goods.

5.Complacency (Noun)

Hindi Meaning – आत्मसंतुष्टि
English Meaning – A feeling of smug or uncritical satisfaction with oneself or one's achievements.

6.Moderation (Noun)

Hindi Meaning – संयम, संतुलन
English Meaning – The avoidance of excess or extremes, especially in one's behavior or political opinions.

7.Chunk (Noun)

Hindi Meaning – बड़ा हिस्सा, बड़ा भाग
English Meaning – A thick, solid piece of something; a significant amount of something.

8.Expedite (Verb)

Hindi Meaning – शीघ्रता करना
English Meaning – To make an action or process happen sooner or be accomplished more quickly.

9.Prudent (Adjective)

Hindi Meaning – विवेकपूर्ण, सावधानीपूर्वक
English Meaning – Acting with or showing care and thought for the future.

10.Repayment (Noun)

Hindi Meaning – पुनर्भुगतान
English Meaning – The action of paying back a loan or a debt.

11.Moratorium (Noun)

English Meaning – A temporary prohibition of an activity; a legal authorization to debtors to postpone payment.

12.Slacken (Verb)

English Meaning – To make or become loose or less active; to reduce in speed or intensity.