NITI Aayog publishes Trade Watch Q4 FY24-25 Quarterly Report

1. Report Overview

• Report: The fourth book of "Trade Watch Quarterly."
• Period under consideration: Fourth quarter (January-March) 2024-25 financial year.
• Published: Shri B.V.R. Subrahmanyam, CEO, NITI Aayog, in New Delhi.
• Purpose: The report will give a detailed report on the performance of India in terms of trade, with emphasis being given to the trend of merchandise and services, global demand changes, and export diversification policies.

2. Most important Trade Performance Highlights (Q4 FY24-25)

• Total Trade: India has total trade that is USD 441 billion and it is increasing at 2.2 per cent annually.
• Merchandise Exports: Suffered a slight fall, against which is the reduced exports of mineral fuels and organic chemicals. Nevertheless, good growth was reported in such industries as electrical machinery, pharmaceuticals, and cereals.
• Imports: The growth was modest and was fuelled by the rise in demand in nuclear reactors, electrical machinery and inorganic chemicals.

3. Regional Trade Dynamics

• Best Export Market: North America had the highest growth of 25 percent to make up a quarter of the Indian total exports.
• Other Regions: There was moderate growth in exports to European Union (EU), GCC and ASEAN.
• Change in Imports: UAE turned out to be the new second largest importer in India and this was mostly because of the rise in gold imports under the India-UAE CEPA.
• Chinese imports increased tremendously due to the need in electronics.

4. Special Focus: Leather and Footwear Industry.

• The report consists of a specific analysis of the leather and footwear industry.
• Employment: The sector has high employment levels with 4.4 million people being supported.
• Global Position: India competes in both processed and niche leather apparel, which is 1.8 percent of the USD 296 billion worldwide market.
• Challenges and Opportunities: The industry experiences the global trend to non-leather products and sustainability.

5. Strategic Recommendations

• The report outlines some of the important strategies that can be used to increase the presence of India in the global trade:
• Strengthening MSMEs.
• Increasing spending on Research and Development (R&D).
• Going with green and design-driven global value chains.

Associated News

• NITI Aayog along with IAMAI also published a report called "Rethinking homestays: Navigating policy pathways," which offers a strategic map to empower India homestay ecosystem.