Economy
International Trade
Welcome to the International Trade study hub, an indispensable section within your UPSC Economy preparation. International Trade, at its core, involves the exchange of goods, services, and capital across national borders.
70 articles in this topic
Articles on International Trade
India's Seafood Export Gets Boost
In News India’s marine products exports increased by 16% in terms of value and 12% in volume during the first seven months (April-October) of FY 2025-26 as compared to the corresponding period last fiscal. India’s Position in Global Seafood Trade According to the data, India’s seafood exports increased to $4.87 billion in April-October 2025 from $4.19 billion during the same period of 2024. The increase was driven by successful market diversification, with sharp export growth to countries such a
States Challenges in Exports at the Board of Trade meeting
Context Many challenges were flagged by exporters in a meeting of the Board of Trade (BoT) chaired by the Union Commerce and Industry Minister. About The BoT meeting happened in the backdrop of slowing exports due to the steep US tariffs of 50% as both countries failed to conclude a trade deal. In the Board of Trade meeting, representatives from states and the industry, as well as key Central ministries, provide the Commerce Ministry with specific inputs to boost exports and trade.
India’s Domination of Global Rice Trade Stokes Looming Water Crisis
Context India is the world’s largest rice exporter despite being a highly water-stressed country which represents a policy paradox. About India overtook China as the world’s largest rice producer and now accounts for ~40% of global rice exports. Rice exports crossed 20 million metric tonnes in the latest fiscal year.
3 Years of India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA)
In News The India–Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) has completed three years of operation since its implementation in December 2022. What is Ind-Aus ECTA? The Ind-Aus ECTA is a bilateral free trade agreement between India and Australia, signed on 2 April 2022 and implemented from December 2022.
Concentrated of India's Exports in Few States
Context The RBI Handbook of Statistics on Indian States 2024–25 reveals that export growth is increasingly concentrated in a few developed coastal and industrial States, masking deep regional and employment-related challenges. Pattern in India’s Exports Rising dominance of few States: The top 10 States now account for over 91 percent of India’s exports in FY25, up from 84 percent in FY22. The top five States, Gujarat, Maharashtra, Tamil Nadu, Karnataka and Uttar Pradesh, together contribute near
India – New Zealand Free Trade Agreement
Context India and New Zealand have concluded a comprehensive Free Trade Agreement (FTA). About India has signed six Free Trade Agreements in the last five years, the latest being with Oman. India-Oman Comprehensive Economic Partnership Agreement (CEPA), 2025.
Global Value Chain Development Report 2025
Context The Global Value Chain Development Report 2025 has been released by the World Trade Organization (WTO). What is the Global Value Chain (GVC)? A Global Value Chain (GVC) refers to the full range of activities involved in producing a good or service, when these activities are spread across multiple countries.
Mexico Imposes up to 50% Tariff on Imports From India and China
Context Mexico has approved tariffs of up to 50% on imports from non-FTA partners, including India, effective from April 1, 2026. What is Trade Protectionism? Trade protectionism refers to policy measures, such as tariffs, quotas, import licensing, local content rules, aimed at shielding domestic industries from foreign competition.
China’s $1 Trillion Trade Surplus: Impacts Over World & On India
Context Recently, China’s trade surplus surpassed $1 trillion in the first eleven months of 2025, underscoring China’s dominance in global manufacturing and exports. It also reveals underlying economic vulnerabilities and global trade distortions. Milestone and Its Meaning of $1 Trillion Trade Surplus It is the culmination of two decades of industrial scaling and policy continuity of China including the tightly integrated supply chains, infrastructure depth, and manufacturing ecosystem.
Export Promotion Mission (EPM)
Context The Government has approved the Export Promotion Mission (EPM) with ₹25,060 crore to boost exports, especially for MSMEs and labour-intensive sectors. Export Promotion Mission In the Union Budget for 2025-26, the Finance Minister announced an Export Promotion Mission. It would facilitate easy access to export credit, cross-border factoring support, and support to MSMEs to tackle non-tariff measures in overseas markets.
Government Strengthens Logistics Framework to Boost Exports Amid Global Disruptions
Context The Government of India is actively enhancing logistics infrastructure to address global logistics disruptions and enhance export efficiency. Overview of the Logistics Landscape in India India’s logistics sector was valued at USD 215 billion in 2021. It is well-positioned for strong growth with an expected compound annual growth rate (CAGR) of 10.7% till 2026.
Need To Recalibrate India’s Export Strategy
Published on: 6th December, 2025 India needs to recalibrate its export strategy including market diversification, diplomatic engagement, and on-ground business development to navigate rising global trade headwinds and maintain competitiveness.
Export Promotion Mission
Context Amid pressure on goods exports to the US due to high 50% tariffs, the Union Cabinet has approved a six-year Export Promotion Mission with an outlay of Rs 25,060 crore. Export Promotion Mission In the Union Budget for 2025-26, the Finance Minister announced an Export Promotion Mission. It would facilitate easy access to export credit, cross-border factoring support, and support to MSMEs to tackle non-tariff measures in overseas markets.
Indian Maritime Sector Has Seen Historic Progress: PM Modi
Context Recently, the Prime Minister of India, addressing the Maritime Leaders’ Conclave during India Maritime Week 2025, declared that India’s maritime sector has undergone ‘historic progress’, positioning the nation as a rising force in global maritime trade. About the India’s Maritime Sector Nearly 95% of India’s trade by volume and about 70% by value moves through maritime routes. In FY 2024–25, major ports handled about 855 million tonnes of cargo, signaling robust growth in maritime trade
Great Nicobar Project to Boost India’s Maritime Global Trade
Context At the India Maritime Week 2025 in Mumbai, the Union Home Minister announced the Great Nicobar Project will play a transformative role in enhancing India’s maritime global trade and shipbuilding capacity. India’s Maritime Strength India’s coastline spans over 11,500 km across 13 coastal states, providing a strong base for maritime trade. Maritime activities contribute nearly 60% of India’s GDP, reflecting their strategic and economic importance.
India and Saudi Arabia to Deepen Trade Relations
Context A high-level Saudi Arabia delegation met the Secretary, Union Ministry of Textiles, to advance bilateral cooperation in the textile sector. Major Highlights India and Saudi Arabia have a bilateral trade reaching USD 41.88 billion in FY 2024–25. India emerged as the second-largest supplier (USD 517.5 million) to Saudi Arabia’s textile and apparel sector, capturing an 11.2% share of Saudi Arabia’s total textile and apparel imports in 2024.
India-European Free Trade Association Trade and Economic Partnership Agreement (TEPA) came into effect
In News India-European Free Trade Association(EFTA) Trade and Economic Partnership Agreement (TEPA) came into effect . The India-EFTA Trade and Economic Partnership Agreement (TEPA) TEPA is a modern and ambitious agreement that incorporates, for the first time in any Free Trade Agreement (FTA) signed by India, a commitment linked to investment and job creation. The agreement was signed in March 2024 at New Delhi.
U.S. Imposes 100% Tariff on Pharmaceuticals Import
Context The U.S. President Donald Trump announced a 100% import tariff on branded and patented pharmaceutical products, including a 25% tariff on imports of all heavy-duty trucks and 50% tariff on kitchen cabinets. About Exemptions: The EU and Japan benefit from a 15% tariff ceiling, under special trade agreements that cap duties on most goods, including pharmaceuticals.
Impact of U.S. Tariffs on Jewellery Sector
In News India’s diamond and jewellery sector has been severely impacted by U.S. tariffs of 50% on cut and polished diamonds and 50-57% on studded and non-studded jewellery, disrupting decades of established trade. About The U.S.
Artificial Intelligence as a Catalyst For Trade Growth
Context The World Trade Organization’s (WTO) World Trade Report 2025 found that Artificial Intelligence (AI) has the potential to boost global trade by up to nearly 40 per cent over the next 15 years, provided critical policy and infrastructure gaps are plugged. AI as a Driver of Trade-Led Growth Trade facilitation: AI in logistics and customs can reduce trade costs by up to 15%, according to WTO simulations. Productivity boost: AI-driven automation enhances efficiency across manufacturing and s