NITI Aayog has launched the second edition of “Trade Watch Quarterly” for Q2 of FY 2024-25 to offer a holistic snapshot of India’s trade position, providing global demand-supply perspectives, sectoral performance, and insights into emerging trade opportunities.
Key Highlights
- India’s total trade: Itgrew by 5.67% in April–September 2024 compared to the same period in 2023, with exports rising 5.23% and imports increasing 6.07% year-on year.
- India’s merchandise exports: They have remained stable, averaging $35.4 billion per month over the past six months, while imports averaged $57.8 billion, except for a surge in August. Year on year fluctuations remain aligned with Q1 levels.
- India’s exports composition: It has remained stable, with a drop in mineral fuels; copper entered the top ten imports due to rising infrastructure demand.
- Leading Exports Markets: USA, UAE, and the Netherlands continue to be India’s leading export markets, accounting for 33% of total exports. Netherlands’ growth driven by smartphones and petroleum; the top five markets remain stable.
- Leading Imports: China, UAE, and Russia continue to lead imports; UAE imports surged due to gold demand, while crude imports from Russia, Iraq, and Saudi Arabia slowed.
- Regional Trade Contribution: India has scope to strengthen its presence in major global trade regions, as it currently accounts for only 8% of its trade in regions that make up 77% of world trade, presenting opportunities for growth in high-value markets.
- Merchandise trade deficit with FTA partners: It rose to $26 billion; exports to Japan grew by 30% on smartphone shipments, while UAE imports jumped 48% due to gold demand.
- Textiles: India ranks 6th in global textile exports, but its basket remains skewed towards natural fibers with a strong presence in cotton and carpet threads.
- Global textile exports: They are moving towards manmade and technical textiles, while India’s focus remains on natural fibers and apparel, with a declining share in the latter.
- India’s GVC participation in the textile sector: It is concentrated in intermediate and primary inputs (such as cotton, wool, and silk), reflecting a limited presence in high-value downstream products.