India needs targeted tariff cuts and a reorientation of production toward high-demand segments such as passenger vehicles to strengthen global competitiveness, according to NITI Aayog. In its Trade Watch Quarterly (April–June 2025), the Aayog stressed that improving quality standards, certification systems, technology adoption, and forward linkages in global value chains is essential.

The report highlights structural shifts in India’s trade profile, including rising technology-intensive exports, strong services-led growth, and deeper integration into global supply chains. A special focus on automotive exports identified opportunities to expand India’s share in the USD 2.2-trillion global auto market through policy reforms, market diversification, and two-way trade.

India’s trade remained stable in Q1 FY26, supported by strong services exports and steady global trade growth.