In March 2025, Dr. Arvind Virmani, Member of the National Institution for Transforming India (NITI) Aayog released the second edition of the “Trade Watch Quarterly” (TWQ) publication for the Second Quarter of the Financial Year 2024-25(Q2 FY25 : July to September) in New Delhi, Delhi.
- This edition presents a detailed analysis of India’s trade position and offers key insights into the textile sector, a key contributor to economic growth.
India’s Trade Performance in Q2 FY25:
i.India’s total trade grew by 5.67% to USD 839 billion, during April–September 2024 compared to the same period in 2023, with exports rising 5.23% to reach USD 395 billion and imports increasing 6.07% Year-on-Year (Y-o-Y), reached USD 445 billion.
ii.Copper entered the top 10 import sectors with a 28% Y-o-Y increase due to rising infrastructure demand.
iii.Composition of exports remained stable, with a Y-o-Y export growth in electrical machinery and nuclear reactors, while mineral fuels and iron & steel witnessed a decline.
iv.The merchandise trade deficit with Free Trade Agreement(FTA) partners climbed to USD 26 billion.
- Exports to Japan increased by 30%, driven by smartphone shipments, while imports from the UAE surged 48%, largely due to high gold demand.
Regional Contribution:
i.North America and the European Union (EU) continue to dominate India’s exports, accounting for approximately 40%.
- The United States of America(USA), the United Arab Emirates(UAE), and the Netherlands remain India’s top export destinations, collectively making up 33% of total exports.
- The growth in exports to the Netherlands has been primarily driven by smartphones and petroleum.
ii.Northeast Asia and West Asia remain key sources of imports, contributing to approximately 40% of total imports.
- Notably, gold imports have driven import growth from West Asia.
- China , the United Arab Emirates(UAE), and Russia continue to be the top sources of India’s imports. Imports from the UAE saw a significant surge, largely due to increased shipments of specific goods.
Focus on Textile Sector:
i.The textile sector remains a vital contributor to industrial output, employment, and export earnings. India is among the top 10 global textile exporters, holding a 4% share in global trade.
ii.India predominantly exports natural fibre-based products like cotton and carpets, making up 70% of total textile exports.
- India was the 6th largest textile exporter in 2023 globally, with a strong presence in natural fibre-based products like cotton and carpet threads
iii.India’s textile sector plays a crucial role in the country’s industrial output, employment, and exports, contributing 5% to total exports and amounting to USD 34.2 billion in 2023.
About National Institution for Transforming India (NITI) Aayog:
Chief Executive Officer (CEO) – B.V.R. Subrahmanyam
Headquarters- New Delhi, Delhi
Established – 2015
