India's merchandise exports increased modestly by 3% to $108.7 billion in 2024, while imports rose by 6.5% to $187.5 billion, resulting in a growing trade deficit, but a robust services sector offset this with a $52.3 billion surplus.

India's digital services exports reached $269 billion in 2024, making the country the fifth-largest exporter globally in this sector, driven by a 17% rise in services exports including IT, consulting, and R&D.

On July 14, 2025, Dr. Arvind Virmani of NITI Aayog released the third edition of the Trade Watch Quarterly, analyzing India's trade performance for Q3 FY25 amidst global shifts, especially in U.S. trade policy.

The report concludes with recommendations for enhancing India's trade, including diversifying exports, strengthening market intelligence, and deepening strategic trade ties.

High-tech exports, including aircraft and spacecraft parts, grew over 200% year-on-year, reflecting a significant shift towards high-tech products in India's export portfolio.

Exports of aircraft and spacecraft parts alone surged by over 200%, driven by demand from countries such as Saudi Arabia, UAE, and the Czech Republic.

India's trade advantages include lower tariffs compared to competitors like China and Vietnam, particularly in pharmaceuticals, textiles, and auto components, which could be further leveraged.

High-tech merchandise exports, including electrical machinery and arms, have grown at a 10.6% CAGR since 2014, reaching $80.6 billion in 2024.

To capitalize on global trade realignments, the report recommends policy reforms such as expanding PLI schemes, accelerating FTAs, improving MSME export credit, and developing digital trade infrastructure.

Despite these opportunities, India needs proactive policies, logistics reforms, and stronger institutional mechanisms to fully harness its trade potential.

India's strategic trade positioning is emphasized, with the country poised to benefit from shifts against competitors like China and Canada.

Trade with FTA partners increased by 16% year-on-year, with Mauritius experiencing an 800% surge in imports, mainly due to offshore drilling platform purchases.