NEW DELHI, India — India’s automotive sector is well positioned to expand its share of the $2.2 trillion global auto export market, which continues to grow, according to the latest Trade Watch Quarterly released on Tuesday by government policy think tank NITI Aayog.
The report said that while India has already performed strongly in select segments of automotive exports, substantial opportunities remain to scale its presence across the broader global market. It highlighted structural shifts in India’s trade profile, including the rising share of technology-intensive exports, sustained momentum in services-led growth, and changes in import composition reflecting deeper integration with global value chains.
The thematic focus of the latest edition centers on automotive exports, noting the sector’s increasing global relevance, strong domestic manufacturing base, and widening international footprint. India has recorded notable gains in auto components as well as vehicle categories such as motorcycles and tractors, underscoring improvements in manufacturing depth and competitiveness.
According to the publication, the auto sector’s growing integration into global value chains and its diversified export reach across advanced and emerging markets position it to scale further. Continued progress will depend on stronger value-chain integration, improved logistics infrastructure, and closer alignment with evolving global demand.
The analysis, based on a mapping of global automotive trade, India’s export performance, and stakeholder consultations, outlined several policy measures to enhance competitiveness and global positioning. These include reorienting production toward high-demand segments, strengthening quality and certification frameworks, accelerating technology adoption, expanding market diversification, and fostering deeper forward linkages within global automotive supply chains.
The Trade Watch Quarterly for the first quarter of fiscal year 2025–26 (April–June 2025) was released by NITI Aayog member Arvind Virmani in the presence of senior officials and other members.
Speaking at the release, Virmani said boosting export competitiveness, particularly in sectors such as automobiles, will be critical for sustaining long-term economic growth and employment generation.
He added that the publication provides a comprehensive, data-driven assessment of India’s trade performance amid shifting global conditions, with a particular focus on the structure and competitiveness of automotive exports.
The report is intended to serve as a reference for policymakers, industry participants, researchers, and academia, offering evidence-based insights and forward-looking recommendations to strengthen India’s trade performance in a rapidly evolving global environment. (Source: IANS)
