Overview
- NITI Aayog, which released its Q3 Trade Watch on Monday, said tensions in West Asia could widen India’s current account deficit and strain the rupee while also slowing talks on a free trade pact with Gulf nations.
- The think tank reported that in Q3 FY26 exports to free trade agreement (FTA) partners fell 7% year on year to $40.26 billion, while imports from those partners rose 6% to $70.98 billion, marking a third straight quarter of export declines.
- India’s combined goods and services trade grew about 5.3% in April–December FY26 to $1.37 trillion, with services holding up even as goods trade faced a tougher global backdrop.
- To shore up competitiveness, the report urged shifting gems and jewellery toward higher‑value, design‑led products, easing access to raw materials via aligned FTAs and the India International Bullion Exchange, and expanding MSME finance through collateral‑free loans and credit guarantees.
- Context from CNBCTV18’s analysis shows the FY26 goods deficit widening to $333.2 billion and a services surplus of $213.9 billion, with a surge in gold imports and fresh DRI seizures pointing to pressures that could feed into the external gap if not contained.