SYLLABUS

GS-3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

Context: NITI Aayog released the ninth edition of Trade Watch Quarterly, highlighting global and domestic trade trends and the challenges and opportunities in India’s metals and ores sector.

About the Report

• It provides an assessment of global and domestic trade developments amid geopolitical and trade policy uncertainties, with a thematic focus on India’s metals and ores trade.

• The report examines India’s export competitiveness, growing import dependence, and opportunities to strengthen domestic value addition, critical mineral capabilities, and integration with global value chains.

Key Findings of the Report

• Global and Indian Trade Performance: Global goods trade reached $13.7 trillion in the first half of 2026, registering 12.5% year-on-year growth, while services trade grew by 10.5%. 

• India’s total trade reached $506.9 billion in Q1 FY27, registering 15.5% year-on-year growth. 
• India’s digitally delivered services exports increased from $277 billion in 2024 to $317 billion in 2025, making India the fourth-largest global exporter of digitally delivered services, after the United States, the United Kingdom, and Ireland. 
• Trade with Free Trade Agreement partners recorded 36.3% growth in exports and 10% growth in imports. 

• Metals Export Competitiveness: Global imports of metals and ores increased from $1.2 trillion in 2015 to nearly $2 trillion in 2025. However, India’s share of global exports rose only marginally, from 1.7% to 1.8%. 

• India’s metals and ores exports stood at approximately $36.8 billion in 2025, with metals and articles thereof accounting for $34.8 billion. 
• Iron and steel, articles of iron and steel, and aluminium accounted for nearly 78% of metals exports in 2025. 
• India’s exports remain concentrated in traditional metal segments, while global demand is increasingly shifting towards high-value non-ferrous metals and critical minerals. 
• India’s copper exports were valued at $2.9 billion in 2025, accounting for approximately 1.1% of global copper and articles of copper imports. 
• Aluminium exports increased from $2.7 billion in 2015 to $6.8 billion in 2025, raising India’s share of global aluminium demand from 1.7% to 2.6%. 
• India accounted for 12.1% of global lead demand, supported by its recycling ecosystem. 

• Rising Import Dependence: India’s metals and ores imports increased from $32.2 billion in 2015 to $60.5 billion in 2025, driven by growing industrial and infrastructure demand. 

• Copper imports increased from $3.2 billion in 2015 to $11.8 billion in 2025. 
• India meets approximately 96% of its copper ore and concentrate requirements through imports. 
• India remains 100% import-dependent on nickel, cobalt, and lithium. 
• Cumulative foreign direct investment equity inflows into mining stood at only $3.5 billion between 2000 and 2025. 

Recommendations of the Report

• Strengthen Mineral Exploration: Improve geological data, promote exploration, and accelerate the auction and operationalisation of mineral blocks. 

• Promote Domestic Value Addition: Develop domestic processing and specialised manufacturing capabilities for critical minerals and high-value non-ferrous metals. 

• Reduce Import Dependence: Encourage critical mineral recycling and support Indian companies in securing mineral resources overseas. 

• Improve Export Competitiveness: Reduce logistics and export-finance costs and expand access to renewable energy for industries. 

• Address Global Trade Challenges: Strengthen preparedness for the European Union’s Carbon Border Adjustment Mechanism and establish stronger rules of origin under Free Trade Agreements. 

• Simplify Regulatory Processes: Streamline mining and forest clearances to encourage investment and strengthen India’s integration with global value chains.