Robust Services Exports Help Narrow Trade Gap: NITI Aayog Trade Watch Qtly

(MENAFN- KNN India) New Delhi, Jul 14 (KNN) NITI Aayog Member Dr. Arvind Virmani launched the third edition of Trade Watch Quarterly for Q3 FY25 (October–December 2024) in New Delhi on Monday.

The publication offers a detailed overview of India's trade performance and a thematic analysis of evolving US tariff structures and their impact on India's exports.

India's trade performance in the third quarter of FY25 showed signs of resilience despite global uncertainties. Merchandise exports rose by 3 per cent to USD 108.7 billion, while imports increased by 6.5 per cent to USD 187.5 billion.

However, a significant services trade surplus of USD 52.3 billion, driven by a 17 per cent rise in services exports, helped narrow the overall trade gap.

Export composition remained largely stable, with notable growth in high-value segments like aircraft and spacecraft parts, which saw over 200 per cent year-on-year growth.

India also maintained its position as the fifth-largest exporter of Digitally Delivered Services (DDS), with exports worth USD 269 billion in 2024. High-tech merchandise exports-led by electrical machinery and arms-have been growing at a CAGR of 10.6 per cent since 2014.

The edition's thematic section focuses on the US's changing trade and tariff policies, highlighting how India's relative tariff advantage over major competitors creates new opportunities in sectors like pharmaceuticals, textiles, and electrical machinery.

Dr. Virmani praised the analytical depth of the report, noting that India's expanding global trade role is a result of rising competitiveness, innovation, and strategic policymaking. He emphasised the need for adaptive policies to navigate ongoing geopolitical and economic transformations.

The publication also provides key recommendations for enhancing trade facilitation and strengthening India's global market participation.

(KNN Bureau)

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