NITI Aayog has raised concerns over India’s widening trade deficit with Free Trade Agreement (FTA) partners, stressing the need to boost competitiveness in existing agreements.
In the first quarter of 2025‑26, exports to FTA countries fell 9 per cent to $38.7 billion, while imports rose 10 per cent to $65.3 billion, pushing the trade deficit up 59 per cent to $26.7 billion.
The think-tank’s Trade Watch Quarterly report notes that rising import demand, especially for inputs and energy, is outpacing export growth, highlighting the urgency for deeper integration and better utilization of FTAs to strengthen trade performance.