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Subject: Trade

  • NITI Aayog Trade Watch Quarterly (Q4 FY 2025-26)

    Why in News?

    NITI Aayog released the 8th edition of “Trade Watch Quarterly” (Jan-Mar 2026), highlighting India’s trade performance and focusing on the pharmaceutical sector.

    India’s Trade Performance

    • Total merchandise and services trade: $1.84 trillion in FY 2025-26 (↑5.4% YoY).
    • Exports: Grew by 4.2%.
    • Imports: Grew by 6.5%.
    • Services exports: Increased by 9.0%, maintaining a strong services surplus.
    • India remained the 8th largest services exporter in 2025.
    • Services exports recorded a CAGR of 10.3% (2015-2025), higher than the global average.

    Pharmaceutical Sector

    • Global pharmaceutical and API market estimated at $1.3 trillion (2025).
    • India’s pharmaceutical and API exports reached $35.8 billion.
    • India is a leading supplier of Generic medicines, Vaccines, and Essential therapeutics

    Challenges

    • Export basket remains concentrated in generic formulations and retail medicaments.
    • Limited presence in biologics, biosimilars, immunologicals, and advanced therapeutics.
    • Continued dependence on imported Active Pharmaceutical Ingredients (APIs) and intermediates, especially from China.

    Leading Pharmaceutical States

    • Telangana, Gujarat, and Maharashtra
    • These states lead in production, exports, and integration into global pharmaceutical value chains.

    Way Forward

    • Expand into high-value pharmaceutical segments.
    • Strengthen domestic API manufacturing.
    • Increase investments in R&D, technology, and skill development.
    • Improve regulatory efficiency and market access.

    Active Pharmaceutical Ingredient (API)

    • The biologically active component of a medicine responsible for its therapeutic effect.
    • APIs are combined with excipients to produce the final dosage form.

    Biologics

    • Medicines produced from living organisms or biological processes.
    • Examples include monoclonal antibodies, vaccines, and recombinant proteins.

    [2021] With reference to international trade of India, which of the following statements are correct:
    1.The Top 3 export destinations of India are – USA, UAE, China.
    2.The Top 3 exports from India include – Petroleum Products, Drug Formulations, Agricultural Products.
    3.Agricultural exports have consistently risen from 2016-17 to 2021-22.
    4.India’s merchandise exports are less than its merchandise imports.
    Select the correct code from the options given below:

    [A] 1 and 4

    [B] 1 and 3

    [C] 2 and 4

    [D] 1, 2, 3 and 4

  • What are the challenges before the Indian economy when the world is moving away from free trade and multilateralism to protectionism and bilateralism? How can these challenges be met?

    According to the Economic Survey, the previous global paradigm of ‘stable geopolitics’ and ‘free trade and investment movement’, has been fading and the foundations on which many nations built themselves are now being shaken.

    World Moving from Free Trade & Multilateralism to Protectionism & Bilateralism

    Trade Wars – US-China tariff wars

    WTO Deadlock over Doha Development Agenda

    Rise of Bilateral/Regional Deals – Eg- RCEP

    Green Protectionism – EU’s Carbon Border Adjustment Mechanism (CBAM), US CHIPS Act

    Challenges before the Indian economy

    Fragmentation of Global Trade due to rise in tariffs, sanctions etc threaten export-oriented sectors. Eg- IT Industry

    Volatile Capital Flows

    Energy security challenges due to sanctions on Russia (40% share)

    Currency Depreciation

    Technology Barriers – New protectionist tools like data localisation rules of EU.

    Employment Impact – Labour-intensive sectors like textiles, gems, and automobiles face slowdown.

    Way Forward

    Internal Measures

    Ease of Doing Business – The Economic Survey (2024-25) key recommendation is ‘to get the domestic economic engine purring by pulling all the levers of deregulation’.

    Raising the investment rate to around 35% of GDP from the current level of ~ 31%.

    Boost domestic demand through high public capex

    Build resilience in semiconductors, defence, and critical minerals under Atmanirbhar Bharat.

    External Measures (Global Integration)

    Diversify Export Markets – Expand trade with Africa, Latin America, Central Asia, and ASEAN.

    Conclude Balanced FTAs – With EU, Canada, Australia.

    Strengthen IMEC, INSTC, and Chabahar Port for secure and cost-effective routes.

    Global South Leadership in WTO to revive dispute settlement and ensure fair rules.

    A self-sustained growth strategy is imperative for India’s long-term economic sovereignty.

  • Consider the following statements

    Consider the following statements:

    1.The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.
    2.The Government does not impose any customs duty on all the imported edible oils as a special case.

    Which of the statements given above is/are correct?

  • Consider the following statements

    Consider the following statements:
    1. The value of Indo-Sri Lanka trade has consistently increased in the last decade.
    2. “Textile and textile articles” constitute an important item of trade between India and
    Bangladesh.
    3. In the last five years, Nepal has been the largest trading partner of India in South Asia.
    Which of the statements given above is/are correct?

  • Consider the following statements

    Consider the following statements:
    Statement-I: Switzerland is one of the leading exporters of gold in terms of value.
    Statement-II: Switzerland has the second largest gold reserves in the world.
    Which one of the following is correct in respect of the above statements?

  • Consider the following statements

    Consider the following statements:
    Statement-I:
    India accounts for 3.2% of global exports of goods.
    Statement-II:
    Many local companies and some foreign companies operating in India have taken advantage of India’s ‘Production-linked Incentive’ scheme.
    Which one of the following is correct in respect of the above statements?

  • Consider the following statements

    Consider the following statements:

    Statement-I: India does not import apples from the United States of America.

    Statement-II: In India, the law prohibits the import of Genetically Modified food without the approval of the competent authority.

    Which one of the following is correct in respect of the above statements?

  • Consider the following statements

    Consider the following statements:

    Statement-I: Recently, Venezuela has achieved a rapid recovery from its economic crisis and succeeded in preventing its people from fleeing/emigrating to other countries.

    Statement-II: Venezuela has the world’s largest oil reserves.

    Which one of the following is correct in respect of the above statements?

  • MCA-21 is a major initiative taken up by the Government of India in which one of the following areas

    MCA-21 is a major initiative taken up by the Government of India in which one of the following areas?

  • With which one of the following has the B.K. Chaturvedi Committee dealt

    With which one of the following has the B.K. Chaturvedi Committee dealt?