India's automotive exports well positioned to scale further through continued value-chain integration

NITI Aayog has come up with the fifth edition of “Trade Watch Quarterly” update, offering a comprehensive assessment of India’s trade performance amid evolving global conditions, with a special focus on the structure and competitiveness of India’s automotive exports. It noted that is India’s automotive exports, a sector with rising global relevance, strong domestic production capabilities, and expanding international market presence. India has achieved notable gains in auto components and in vehicle segments such as motorcycles and tractors, reflecting growing manufacturing depth and competitiveness. With increasing integration into global value chains and a broad export footprint across advanced and emerging markets, the sector is well positioned to scale further through continued value-chain integration, improved logistics, and closer alignment with global demand.

The report also stated that though India has done well in specific segments of the automotive export market, there are significant opportunities to increase market share in the $2.2 trillion global automotive export market, which is growing. The analysis, based on mapping of global automotive exports, India’s exports, and stakeholder consultations, suggests specific policy steps to enhance competitiveness, global positioning, two-way trade, and to reorient production toward high-demand segments. Further, suggestions include strengthening quality standards, certification systems, technology adoption and market diversification alongside fostering forward linkages in global automotive supply chains.

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