New Delhi: NITI Aayog Trade Watch Quarterly Q3 FY26 highlights how India’s trade remained steady despite global challenges. Released on 20 April 2026, the report shows a mixed but resilient trend in exports and imports, with strong performance in services exports.
The publication gives data-driven insights into India’s global trade position and offers policy recommendations to improve competitiveness. It also focuses on key sectors like gems and jewellery, making it an important document for policymakers, businesses, and researchers tracking India’s economic growth.
Details of NITI Aayog Trade Watch Quarterly Q3 FY26
The seventh edition of the “Trade Watch Quarterly” was released in New Delhi by Vice-Chairman Suman Bery in the presence of senior officials including Arvind Virmani.
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This quarterly report is a flagship analytical publication that tracks India’s trade performance and global trends. It provides forward-looking policy insights to support better decision-making and improve India’s position in global markets.
India’s Trade Performance in Q3 FY26
India’s trade performance during October–December 2025 showed a mixed but stable trend:
- Merchandise exports grew by 1.6%
- Merchandise imports increased by 7.9%
- Services exports rose strongly by 7.8%
- Services imports saw moderate growth
This resulted in a strong services surplus that helped balance the overall external trade position.
Overall, India’s total trade continued to grow, showing resilience despite global economic uncertainties.
Focus Sector: Gems and Jewellery Industry
The report’s key theme is India’s gems and jewellery sector, which plays a major role in exports and employment.
- Global market size (excluding gold): $378 billion (2024)
- India’s exports: $29.5 billion
- Global share: 7.8%
India’s strength lies in diamonds and precious jewellery, accounting for over half of global demand.
Surat continues to be the world’s largest hub for diamond cutting and polishing, reinforcing India’s global leadership in this segment.
Key Trade Patterns and Global Position
The report highlights important structural trends:
- Exports are concentrated in a few major markets like the US, UAE, and Hong Kong
- Imports depend heavily on limited suppliers of raw materials
- India is increasingly becoming a value-added processing hub
These patterns show both strength and risk in India’s trade ecosystem.
Major Challenges Identified
Despite strong performance, the report points out several issues:
- Low value addition due to fragmented MSME sector
- Heavy reliance on imported raw materials
- Limited access to finance for small businesses
- Skill and design gaps
- Weak integration into global value chains
These challenges can affect long-term competitiveness if not addressed.
Policy Recommendations by NITI Aayog
To improve trade performance, the report suggests:
- Focus on value addition and innovation
- Diversify into emerging sectors like lab-grown diamonds
- Improve access to finance and raw materials
- Invest in technology and skill development
- Strengthen policy frameworks for global integration
These steps can help India become more competitive globally.
Expert Statement
Suman Bery emphasized that as global trade evolves, India must diversify exports and strengthen domestic capabilities.
He highlighted that improving value addition and addressing structural issues will be key to sustaining growth and resilience.
What is the Importance of NITI Aayog Trade Watch Quarterly Q3 FY26
The NITI Aayog Trade Watch Quarterly Q3 FY26 is important because it:
- Provides real-time trade insights
- Helps policymakers design better strategies
- Identifies growth sectors and risks
- Supports India’s goal of becoming a global trade leader
Conclusion
India’s trade performance in Q3 FY26 reflects stability in a challenging global environment. While services exports continue to drive growth, sectors like gems and jewellery remain crucial for exports. However, structural challenges need urgent attention. With the right policy actions, India can strengthen its position in global trade and achieve long-term economic growth.
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