The latest edition of Trade Watch Quarterly, released on January 6, 2026, presents an in-depth analysis of India’s trade performance for Quarter I of FY 2025–26 (April–June 2025). This report, spearheaded by Dr. Arvind Virmani, Hon’ble Member of NITI Aayog, provides critical insights into the evolving global trade landscape.

Key Highlights

  • Structural Shifts in Trade Profile: The publication underscores significant changes in India’s trade dynamics, highlighting an increase in technology-intensive exports and a robust growth trajectory in the services sector.
  • Focus on Automotive Exports: This edition particularly emphasizes India’s automotive exports, exploring global demand trends, the competitive landscape in vehicles and auto components, as well as tariff structures and intra-industry trade.

Thematic Analysis: India’s Automotive Sector

India’s automotive sector is rapidly gaining prominence on the global stage, with strong domestic production capabilities and an increasing international market presence. Key findings include:

  • Competitive Gains: India has made substantial advancements in both auto components and vehicles, notably motorcycles and tractors, thanks to its growing manufacturing depth.
  • Global Value Chains: With deeper integration into global value chains, India’s automotive exports are well-positioned to expand further, supported by enhanced logistics and alignment with international demand.

Opportunities for Growth

Despite the gains made, there remains a vast potential to capture a larger share of the $2.2 trillion global automotive export market. The analysis suggests several actionable policy recommendations aimed at bolstering competitive positioning and promoting two-way trade, including:

  • Strengthening quality standards and technology adoption
  • Diversifying markets and enhancing certification systems
  • Fostering forward linkages within global automotive supply chains

Expert Insights

Dr. Virmani emphasized that enhancing India’s export competitiveness, particularly in the automotive sector, is vital for sustaining long-term economic growth and generating employment opportunities.

Conclusion

The Trade Watch Quarterly serves as an indispensable resource for policymakers, industry practitioners, researchers, and academia. The publication offers evidence-based insights and tailored policy recommendations to improve India’s trade performance in a rapidly evolving global marketplace.

For complete details, access the full publication here.