India’s latest Trade Watch Quarterly for Quarter I of FY 2025–26 marks structural changes in the country’s trade profile and places special emphasis on automotive exports. The publication examines India’s export performance in a changing global environment, with focus on technology-intensive exports, services-led growth, import composition, and deeper integration into global value chains.
Key Trade Trends
The quarterly review notes several emerging shifts in India’s external trade:
- Technology-intensive exports are contributing more to the export basket.
- Services continue to support overall growth.
- Import patterns reflect stronger integration with global production networks.
- Trade performance is being shaped by evolving global demand and supply conditions.
Focus on Automotive Exports
The thematic section studies India’s automotive exports in detail. It covers global demand patterns, India’s export footprint across vehicles and auto components, tariff structures, intra-industry trade, and participation in global value chains. The analysis shows that India has gained ground in auto components, motorcycles, and tractors. These gains reflect stronger manufacturing depth and improving competitiveness.
Global Market Opportunity
The global automotive export market is estimated at about $2.2 trillion and continues to expand. India has a broad export presence across advanced and emerging markets, but its market share remains below potential. The sector is seen as well placed for further growth through:
- Better logistics and supply-chain efficiency.
- Greater value-chain integration.
- Improved alignment with global demand.
- Expansion into high-demand vehicle segments.
Policy Priorities and Competitiveness
The publication identifies key steps to improve export performance. These include stronger quality standards, better certification systems, wider technology adoption, market diversification, and deeper participation in global automotive supply chains. It also underlines the need to strengthen two-way trade and reorient production towards segments with higher international demand. The report positions export competitiveness, especially in automobiles, as important for long-term growth and employment generation.
Last Modified: April 25, 2026