India needs to cut tariffs and shift manufacturing toward high-demand segments such as passenger vehicles to improve global competitiveness, government think tank Niti Aayog said in a report.
In its Trade Watch Quarterly for April-June 2025, released Tuesday, the Aayog called for strategic measures including tariff rationalisation, stronger two-way trade linkages and greater participation in cross-border platforms to bolster the country’s export position.
The report also listed improvements in quality standards, certification systems and technology adoption, alongside deeper integration into global supply chains, as key to sustaining export growth.
India’s trade profile is undergoing a structural change, with technology-intensive exports gaining share, services continuing to anchor growth and imports increasingly reflecting integration into global value chains, the report said.
Focusing on the automotive sector, the report assessed India’s export footprint across vehicles and auto components, tariff structures, intra-industry trade and participation in global value chains. While India has performed well in select segments, the Aayog flagged significant scope to expand market share in the $2.2 trillion global automotive export market.
The analysis, based on global export mapping and stakeholder consultations, outlined policy priorities to enhance competitiveness, expand trade and reorient production toward segments with stronger global demand.
