Economy ยท GS3
Trade Watch Quarterly
One line
NITI Aayog's fifth Trade Watch Quarterly examined technology-intensive exports, services growth, import composition, and automotive export competitiveness.
Summary
Headline export growth can hide dependence on imported inputs, narrow destinations, or weak domestic value addition. The report's automotive focus links tariffs, components, intra-industry trade, and global value chains.
PYQ pattern
UPSC commonly asks about export composition, value chains, trade deficits, services, and industrial competitiveness. Review the official UPSC question-paper archive.
Core notes
- The edition covered April to June 2025 and was released in January 2026.
- Intra-industry trade means a country both imports and exports related goods within the same industry.
- Participation in a global value chain can raise exports without guaranteeing high domestic value addition.
Prelims lens
- NITI Aayog is an executive policy institution, not a constitutional finance commission.
- Merchandise trade and services trade use different statistical categories.
- Tariffs can affect both finished vehicles and imported components.
MCQ 1
Intra-industry trade refers to:
- A. Simultaneous import and export of related products in one industry
- B. Trade only between government departments
- C. Barter without goods
- D. Domestic retail within one district
Reveal answerHide answer
A
Automotive economies often import some components or models while exporting others.
MCQ 2
Consider the following statements:
- Export growth always proves that domestic value addition has risen by the same proportion.
- Imported intermediate inputs can be part of an export value chain.
- A. 1 only
- B. 2 only
- C. Both 1 and 2
- D. Neither 1 nor 2
Reveal answerHide answer
B
Gross export value may include imported content, so statement 1 is incorrect.
Mains
Question, 10 marks, 150 words: What determines whether participation in global value chains produces durable industrial capability?
Approach:
- Explain imported inputs, processing, and exports.
- Discuss technology transfer, supplier depth, skills, and scale.
- Examine low value addition and external shocks.
- Suggest logistics, standards, research, and supplier-development policy.