NITI Aayog’s Trade Watch Quarterly

NITI Aayog’s Trade Watch Quarterly

  • Context:

  • NITI Aayog released the fifth edition of its "Trade Watch Quarterly" for the first quarter of FY 2025-26.

  • The report highlights structural shifts in India's trade, specifically noting a sharp rise in the trade deficit with Free Trade Agreement (FTA) partners

  • Key Trade Trends:

  • FTA Deficit:

  • India's trade deficit with FTA partners widened by 59.2% year-on-year.

  • Imports from these nations rose by 10% (to $65.3 billion), while exports declined by 9% (to $38.7 billion).

  • Sectoral Performance:

  • Electronics emerged as the standout performer, growing 47% and accounting for over 11% of total exports.

  • Petroleum exports saw a sharp decline, contrasting with the growth in sunrise sectors.

  • Import Dynamics:

  • Imports surged from the UAE (28.7%), USA (16.9%), and China (16.3%).

  • Gold compounds drove the surge from the UAE, which surpassed Japan as a key supplier.

  • Conversely, imports from Russia declined due to lower petroleum inflows.

  • Automotive Sector

  • The report analyzes India's footprint in the $2.2 trillion global automotive market.

  • Significance:

  • The findings emphasize the urgency of diversifying India's export basket beyond traditional commodities and addressing the imbalance in trade with FTA partners.