India has shown success in certain automotive export sectors, but there are ample opportunities to grow its market share in the $2.2 trillion global automotive export market, as per the latest ‘Trade Watch Quarterly’ by NITI Aayog. The report highlights shifts in India’s trade profile, emphasizing the rise of technology-intensive exports, strong services-led growth, and changes in import composition indicating deeper integration into global value chains.
The focus of this quarter’s report is on India’s automotive exports, a sector gaining global significance with robust domestic production capabilities and an expanding international market presence. Noteworthy progress has been made in auto components and vehicle segments like motorcycles and tractors, showcasing increased manufacturing depth and competitiveness.
With India’s growing integration into global value chains and a wide export footprint in advanced and emerging markets, the automotive sector is well-positioned for further growth through enhanced value-chain integration, improved logistics, and alignment with global demand. The report suggests specific policy measures to boost competitiveness, global positioning, two-way trade, and to align production with high-demand segments.
The analysis, based on global automotive export mapping, India’s exports, and stakeholder consultations, recommends actions to enhance quality standards, certification systems, technology adoption, and market diversification while fostering linkages in global automotive supply chains. The ‘Trade Watch Quarterly’ for Quarter I of FY 2025–26 was unveiled by NITI Aayog member Arvind Virmani, stressing the importance of enhancing India’s export competitiveness, especially in sectors like automobiles, for sustained growth and job creation.
Virmani highlighted that the report provides a data-driven assessment of India’s trade performance, focusing on the structure and competitiveness of India’s automotive exports. It aims to offer evidence-based insights and policy recommendations to fortify India’s trade performance in a rapidly evolving global landscape, catering to policymakers, industry players, researchers, and academia.
