Despite $445 billion in merchandise exports, India's share of world exports is just 1.7%, lower than in 1948. Tariffs remain high, and export complexity lags Asian peers.
India is now the world’s fifth-largest economy, and its goods exports have grown from under $2 billion at independence to over $445 billion in 2025. Yet its weight in global trade reflects moderate success, not dominance. The country’s share of world merchandise exports is 1.7%, down from 2.2% in 1948.
Meanwhile, many Asian economies that started far behind India have surged ahead. This page examines the evidence behind India’s trade competitiveness: terms of trade, export shares, openness, tariffs, comparative advantage, participation in global value chains, and the sophistication of its export basket. The picture is mixed, impressive absolute growth, but relative underperformance compared to peers, and a structure that remains tilted toward low-complexity goods.
What are India’s terms of trade and what do they signal?
The terms of trade index measures the price of India’s exports relative to its imports, with 2015 as the base year (100). A number below 100 means export prices buy fewer imports than they did in 2015. In 2025, India’s terms of trade stood at 92.5, a substantial rise from 63.7 in 1980.
This improvement means that over four decades, India’s export prices have grown faster than import prices. For instance, higher global prices for refined petroleum and chemicals have helped. However, the index remains below parity, and since 2022 it has dipped slightly, suggesting recent pressure. A declining terms of trade reduces national purchasing power, each shipment of goods buys fewer foreign products. So while the long-term trend is positive, India is still getting less for its exports relative to what the world charges for its imports than it did in 2015.
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India's terms of trade
India's terms of trade index rose to 92.5 in 2025 from 63.7 in 1980, but remains below parity, meaning export prices still buy fewer imports than in 2015.
UN Comtrade
index (2015=100)
About this chart
The chart tracks the price India receives for exports relative to what it pays for imports, benchmarked to 2015=100. A climb from 63.7 in 1980 to 92.5 in 2025 means export prices have grown faster than import prices over these 45 years. This improvement partly reflects higher global prices for refined petroleum and chemicals, which feature in India’s export basket. However, the index dipped after 2022, signaling recent headwinds. An index below 100 means every rupee of exports buys less in world markets than it did in 2015. This directly nibbles at national income and consumer purchasing power.
Why this chart It is the purest measure of whether trade is making the country richer or poorer in global price terms.
How to read it An upward-sloping line is good, it means export prices are rising relative to import prices. The distance from 100 shows the shortfall.
Watch out Don't read it as a volume measure, it tells you about prices, not how much India is exporting.
How does India’s export share compare with Asian peers?
India’s share of world merchandise exports fell from 2.2% in 1948 to a low of 0.5% in the early 1980s, then recovered to 1.7% by 2025. Compare this with China, which went from 0.9% to 14.4% over the same period, or South Korea, which rose from almost zero to 2.7%. Vietnam, a late starter with just 0.2% of world exports in 1948, now commands 1.8%, a whisker above India. Thailand, too, climbed from 0.4% to 1.3%. The divergence is stark: India’s share improved by only half a percentage point since the early 1990s, while China added nearly 13 points. These trajectories are not just about size; they reflect deliberate policy choices around trade openness, manufacturing, and integration into global supply chains that India did not replicate.
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The Asian divergence: shares of world exports
China's world export share surged from 0.9% to 14.4% between 1948 and 2025, while India's share fell from 2.2% to 1.7%.
WTO · share of world merchandise exports since 1990
This multi-line chart places India among five Asian economies. India started with the highest share in 1948 (2.2%) but saw a steady decline until the early 1990s, then a modest recovery to 1.7%. South Korea began near zero and now exceeds 2.7%. Vietnam was at 0.2% and now at 1.8%, overtaking India. Thailand's trajectory is similar but at 1.3%. The gap between China and the rest is colossal. The chart captures the different development paths: India pursued inward-looking policies for decades, while others adopted export-led growth.
Why this chart It is the defining visual that answers 'How competitive?', by showing India lost relative ground.
How to read it Each line is a country. Steeper upward slopes indicate faster gains in global export share. Crossings reveal which economies overtook others.
Watch out Don't assume a declining share means exports shrank, India's dollar exports grew enormously, but the world market grew even faster.
How open is India’s economy relative to its neighbours?
Exports as a percentage of GDP measure how trade-driven an economy is. In 2024, India’s exports (goods and services) amounted to 21.2% of GDP, up from 7.1% in 1990 when liberalisation began. That is a marked increase, but it pales beside Vietnam’s 90.2%, up from 36% in 1990. South Korea’s exports are 44.4% of GDP, and even China, with its huge domestic market, records 20%. The world average is 29.1%.
India’s openness is below the world norm and is dwarfed by the dragon economies that bet their growth model on exports. One visible reason is India’s larger reliance on its vast domestic market, but another is the persistent policy choice to protect rather than compete.
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How open, India vs Asian peers
India's exports-to-GDP ratio reached 21.2% in 2024, far below Vietnam's 90.2% and South Korea's 44.4%.
World Bank · exports of goods & services as % of GDP
% of GDP
VietnamSouth KoreaIndiaChina, World
About this chart
The chart shows exports of goods and services as a percentage of GDP from 1990 to 2024. India's line has risen gradually from 7.1% to 21.2%, roughly tripling. But Vietnam's ratio exploded from 36% to over 90%, reflecting its deep insertion into electronics and textile supply chains. South Korea hovered around 50% before moderating to 44.4%, and China’s ratio peaked in the mid-2000s and now sits at 20%. The world average is 29.1%. India has become more open, but it remains far from the export-led extremes. This relative insulation is a choice, not an accident.
Why this chart It quantifies the degree to which trade drives India’s economy relative to peers who gambled on exports.
How to read it Higher lines mean trade is a bigger part of that economy. Look for the gap between India and Vietnam/Korea.
Watch out A low ratio does not automatically mean poor performance, it can also reflect a huge domestic market.
How high are India’s tariffs compared to other economies?
One reason India trades less is its tariff wall. The simple average most-favoured-nation (MFN) applied tariff was 16.2% in 2024, down only slightly from 19.2% in 2005. By contrast, China’s average is 7.5%, Vietnam’s is 9.5%, and South Korea’s is 13.4%. The United States averages just 3.3%. India’s tariffs are among the highest in the world for a major economy.
High tariffs protect domestic producers, but they also raise costs for consumers and make it harder for Indian firms to import competitively priced inputs for their own exports. This protectionist stance is a key reason India is not as deeply integrated into global manufacturing networks.
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Tariff walls: India vs peers
India's average MFN tariff in 2024 was 16.2%, more than double China's 7.5% and five times the US's 3.3%.
WTO · MFN applied tariff, simple average
% (simple average)
IndiaChinaViet Nam, South Korea, United States
About this chart
This line chart compares simple average MFN applied tariffs from 2005 (or 2006 for some) to 2024. India’s line is the highest throughout, drifting down from 19.2% to 16.2%. Vietnam cut its tariff from 16.8% to 9.5% as it pursued trade agreements. China's rate declined from 9.9% to 7.5%, and the US stayed flat around 3.3%. South Korea’s tariff rose slightly to 13.4%. India’s high tariffs persist because of strong domestic lobbies and a policy preference for self-reliance. They raise the cost of imported inputs and shield inefficient producers.
Why this chart It is the policy side of the competitiveness story: India’s trade barriers are unusually high.
How to read it Position of each line tells the story, higher means more protection. The spread between lines widened after 2015.
Watch out These are simple averages, not trade-weighted, so they overstate the tariff on goods actually traded. Still, they show policy intent.
Where does India have a revealed comparative advantage in exports?
Revealed comparative advantageRevealed comparative advantage (RCA)Imagine a shop. If the shop’s share of total tea sales is bigger than the world average, it's 'specialised' in tea. RCA does that for countries and product categories. An RCA above 1 means India exports more of that item as a share of its total exports than the world average. It reveals a strength, not by looking at costs, but by actual trade patterns. It does not mean India is the best at it, just that it focuses more on it.The RCA chart shows exactly which products India punches above its weight in, and where it lags. The numbers explain why India’s export basket is often called traditional. (RCA) measures whether a country exports more of a product category than the world average. An RCA above 1 indicates specialisation. In 2024, India’s strongest advantages lay in textiles (RCA 3.14), clothing (1.65), iron and steel (1.47), pharmaceuticals (1.41), fuels (1.32), chemicals (1.27), and agriculture (1.22).
These are traditional sectors and resource-based products. India has no comparative advantage in machinery and transport equipment (0.71), office and telecom equipment (0.57), or automotive products (0.53), exactly the categories where global demand is robust and value addition is high. The pattern persisted across decades; even textiles, while still a strength, has declined from an RCA of 5.63 in 1980.
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What India is unusually good at exporting
India has a strong revealed comparative advantage in textiles (RCA 3.14) but no advantage in machinery (0.71) or automotive (0.53).
WTO · revealed comparative advantage · latest year
RCA index (>1 = specialised)
About this chart
A bar chart shows RCA indices for ten product categories in 2024. Above the threshold of 1.0, India specialises in textiles, clothing, iron and steel, pharmaceuticals, fuels, chemicals, and agriculture. Below 1.0 are machinery and transport equipment, office and telecom gear, and automotive products. Textiles has the highest RCA, though it has fallen from 5.6 in 1980. The pattern reveals an export basket rooted in traditional goods and resource processing, not in technology-intensive manufacturing. This structure limits the value India captures from global trade.
Why this chart It pinpoints exactly where India outperforms the world in trade and where it lags, giving a structural diagnosis.
How to read it Bars longer than the 1.0 reference line indicate specialisation. The scale is logarithmic? No, regular. Just order by length.
Watch out RCA does not measure absolute size, India could export a tiny amount of something and still have high RCA if the world trades little of it.
How much do India’s trade deals actually cut tariffs?
The MFN tariffMFN tariff (Most Favoured Nation)Imagine a club where every member gets the same entry fee unless you have a special pass. In trade, MFN tariff is the baseline fee a country charges on imports from all WTO members, before any special deals. It’s called 'most favoured' because it guarantees no country gets charged more than another (except in free trade agreements). It counts the average tariff rate across all products. It does not include anti-dumping duties or quotas.India’s MFN tariff is compared with peers to show how protected its market is, a key part of why it trades less. overstates the duty actually paid because bilateral trade agreements grant preferences. The effectively applied tariff, which accounts for these deals, averaged 9.8% in 2023, compared to an MFN rate of 14.9% that same year. The gap, about 5 percentage points, reflects the impact of India’s preferential trade agreements. Still, the effectively applied rate is higher than most peers’ MFN rates. India’s trade deals provide only partial relief, and the basic structure remains highly protected.
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How much India's trade deals cut tariffs
Trade preferences reduce India's average tariff from 14.9% (MFN) to 9.8% (effectively applied), a discount of about 5 percentage points.
WITS · MFN vs effectively applied tariff
% (simple average)
MFN appliedEffectively applied
About this chart
Two lines chart the MFN applied tariff and the effectively applied tariff (including preferences) from 1990 to 2023. Both have fallen dramatically since the early 1990s when they were above 80%. The gap between the lines represents the tariff cut offered through bilateral and regional trade deals. In 2023, that gap was 5.1 percentage points. The effective rate is what most imports actually pay, and at 9.8% it is still high by global standards but significantly lower than the headline MFN rate. The chart shows that liberalisation happened both unilaterally and through negotiations.
Why this chart It corrects the impression that India’s market is completely walled off, many imports enjoy lower duties.
How to read it The space between the two lines is the preference margin. When lines converge, trade deals lose impact.
Watch out The effective rate excludes non-tariff barriers like standards or antidumping duties, which can be just as restrictive.
How complex is India’s export basket compared to regional leaders?
The Economic ComplexityEconomic Complexity Index (ECI)If a country’s exports are like a CV, ECI grades how skilled and varied the jobs are. A high ECI means the country makes many different sophisticated products that few others can make. It counts the diversity of exports and the uniqueness of each product. A low ECI suggests a narrow or simple export basket. ECI is a proven predictor of future growth, but it doesn’t measure income or happiness directly.India’s ECI is shown alongside Asian competitors to reveal the gap in export know-how. The low score helps explain why India’s growth hasn’t been export-led. Index (ECI) captures the diversity and sophistication of a country’s exports. In 2024, India’s ECI stood at 0.71, up from 0.38 in 1995. This is an improvement, but it is far behind South Korea (1.6) and China (1.27). Thailand (0.81) is also ahead, while Vietnam (0.67) is slightly below. India’s complexity is rising, partly due to growth in pharmaceuticals and chemicals, but the gap with the leaders is large. Complexity matters because it correlates strongly with future growth: countries that export a wider set of sophisticated products tend to prosper.
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How complex is India's export economy?
India's Economic Complexity Index reached 0.71 in 2024, but trails South Korea (1.6), China (1.27), and Thailand (0.81).
Harvard Growth Lab · Economic Complexity Index (HS92)
Economic Complexity Index
South KoreaChinaThailandIndiaViet Nam
About this chart
The chart traces the ECI for five Asian economies from 1995. South Korea has long been the most complex, with a score around 1.6. China rose quickly to 1.27 by 2024. Thailand, after a dip, recovered to 0.81. India started at 0.38 and climbed steadily to 0.71, recently surpassing Vietnam (0.67). The gap with China and Korea reflects India’s continued reliance on textiles and commodity-based exports, while they dominate electronics and machinery. Complexity is hard to build; it requires a range of capabilities that take decades to accumulate.
Why this chart It is the best single predictor of future export competitiveness and GDP growth, linking today's basket to tomorrow's prosperity.
How to read it Higher lines mean more complex exports. The slope shows how quickly a country diversified. Watch for crossovers.
Watch out ECI does not measure service exports, India’s IT services prowess is invisible to this index.
What is India’s global rank on economic complexity?
India’s economic complexity rank was 42 in 2024, up from 57 in 1995. A lower rank means more complex. The ranking places India in the top third of countries, but well behind the top tier. The improvement of 15 places over three decades reflects a gradual shift toward more varied and advanced exports, but it is not a leap. India’s rank is similar to countries like Brazil and Indonesia, not the advanced manufacturing powers.
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India's economic complexity rank
India's global complexity rank improved from 57 in 1995 to 42 in 2024, but remains outside the top 40.
Harvard Growth Lab
rank (lower = more complex)
About this chart
This single line shows India’s ECI rank from 1995. A descending line means improvement (lower rank is better). The rank fell from 57 to a low of 40 briefly in 2008, then fluctuated, settling at 42 in 2024. The improvement of 15 places is meaningful but not transformative; India is still behind dozens of smaller, more diversified economies. The ranking highlights that while India has added complexity, the rest of the world has often moved faster. For a country of India’s size and ambition, a rank in the 40s suggests substantial untapped potential.
Why this chart It contextualises India’s complexity in a global ranking, making the gap with leaders concrete.
How to read it Downward line is good. A flat line means India is not gaining ground relative to others.
Watch out Rank changes can happen because other countries falter, not only because India improved. Check the index value too.
How much of India’s exports is actually produced at home?
Gross exports contain both domestic value added (DVA) and foreign value added (FVA), imported inputs that are processed and re-exported. In 2022, India’s DVA accounted for 74.3% of gross exports, down from 89.4% in 1995. Correspondingly, FVA rose from 10.6% to 25.7%.
This means India is relying more on imported components to make its exports, a sign of deeper, though still moderate, integration into global supply chains. The flip side is that a quarter of what India exports is not genuinely made in India. This is not necessarily bad; it means India is specialising in certain stages of production, but the domestic content is shrinking.
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How much of India's exports is really Indian?
Domestic value added in India's exports dropped from 89.4% in 1995 to 74.3% in 2022, as foreign content rose.
OECD TiVA-added content of gross exports
% of gross exports
Domestic value addedForeign value added
About this chart
This chart stacks domestic and foreign value added as shares of gross exports. In 1995, only 10.6% of the value of India’s exports was imported; by 2022, that had climbed to 25.7%. The flip side, domestic content, fell correspondingly. The trend reflects integration into global supply chains: India now uses more imported chips, chemicals, and machinery to make its exports. While this makes exports more competitive, it also means a smaller share of the export dollar stays in India. The shift accelerated after 2010, aligning with India’s push into more sophisticated manufacturing.
Why this chart It dismantles the illusion that exports are purely ‘Made in India’. Most modern exports are a collaborative effort.
How to read it The two lines together always sum to 100%. Watch the split shift from mostly domestic (green) to more foreign (black).
Watch out A rising foreign share is not necessarily bad, it can signal deeper participation in global value chains that boost overall trade.
How deeply is India embedded in global value chains?
Forward participation in global value chains (GVCs) measures the share of India’s exports that are intermediate goods used in other countries’ exports. In 2022, forward participation was 41.2%, down slightly from 44.6% in 1995. This metric indicates that Indian inputs are not as widely demanded as before, possibly because other countries are upgrading their own supply chains. Backward participation (the FVA share) has risen, so overall GVC participation has different dimensions: India is importing more to make its exports, but its own components are not flowing as strongly into global production networks.
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India in global value chains
Forward GVC participation, the share of India’s exports used as inputs in other countries' exports, fell from 44.6% in 1995 to 41.2% in 2022.
OECD TiVA
% of gross exports
About this chart
The line shows the percentage of India’s gross exports that are domestic value added embodied in intermediate goods, destined for other countries’ exports. This forward participation peaked in the late 1990s and has gently declined. It means Indian components are becoming less critical to the export bundles of other nations, perhaps because other countries have developed their own capabilities or because India’s export basket now includes more final goods. A declining forward link suggests India is not moving up the value chain as a supplier to the world’s factories as much as it could.
Why this chart It measures India's role as a supplier to global production, capturing a different side of competitiveness than import dependence.
How to read it An upward slope would mean India is feeding more into the world’s supply chains. The actual downward drift is concerning.
Watch out This is about intermediate goods only; final goods exports are excluded. So a drop could also mean India is exporting more finished products instead.
How well-connected are India’s ports for global trade?
Trade needs physical links. The Liner Shipping ConnectivityLiner Shipping Connectivity IndexThink of it as a city’s bus route score, more buses, frequent trips, bigger buses mean better connectivity. LSCI measures how many container ships visit a country’s ports, how many shipping lines operate, and how large the vessels are. A higher score means cheaper and faster access to world markets. It counts actual ship calls, not port infrastructure. It doesn’t measure customs efficiency directly.This chart is the physical side of trade competitiveness. Even with good products, if ships don’t come often, exports get delayed and costly. Index (LSCI) captures how many ships call at a country’s ports and how large they are. India’s LSCI was 398 in early 2026, up from 212 in 2006, a healthy improvement. However, China’s score is 1,323 and Singapore’s is 630. India’s connectivity has doubled, but it still lags the top maritime hubs. Better connectivity reduces freight costs and delays, so this gap partly explains why trade costs remain high for Indian exporters.
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The plumbing: India's shipping connectivity
India’s liner shipping connectivity index reached 398 in early 2026, but China’s is 1,323 and Singapore’s is 630.
UNCTAD · Liner Shipping Connectivity Index
index (Q1 2023 = 100)
ChinaSingaporeIndia
About this chart
This chart compares India’s LSCI with China and Singapore quarterly since 2006. India’s index has risen steadily from 212 to 398, reflecting more frequent container ship calls and larger vessels. However, the gap with China is vast, China’s connectivity is over three times higher. Singapore, a global transshipment hub, also remains well ahead. India’s gains are real, but its ports still handle far fewer direct liner services. This affects trade costs and delivery times, making Indian exports less nimble in global just-in-time supply chains.
Why this chart It explains a physical bottleneck: even with good products, poor connectivity raises the cost and risk of exporting.
How to read it Height of the line matters. Steeper lines represent faster improvement. The scale is index units, not container counts.
Watch out LSCI does not capture port efficiency or customs delays; it's only about ships. So a high score doesn't guarantee fast cargo.
How do India’s merchandise exports stack up against manufacturing peers?
In absolute dollar terms, India’s merchandise exports were $445 billion in 2025. That places it ahead of Thailand ($340 billion) and Bangladesh ($48 billion), and roughly on par with Vietnam ($473 billion). But China’s exports were $3,772 billion, more than eight times India’s. South Korea, with a fraction of India’s population, exported $709 billion. The raw totals show India is a significant exporter, but not at the scale one would expect from the world’s most populous country and fifth-largest economy.
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India among manufacturing peers
India’s merchandise exports were $445 billion in 2025, comparable to Vietnam’s $473 billion but dwarfed by China’s $3,772 billion.
The chart shows annual merchandise exports in current US dollars since 1948 for six economies. All lines start near zero and fan out after 1990. China’s line is an outlier, crossing a trillion dollars in 2004. South Korea and India started diverging in the 1980s; Korea now exports $709 billion. Vietnam’s line overtook India’s after 2010 and now slightly leads. Bangladesh remains far behind at $48 billion. India’s dollar exports have grown impressively in absolute terms, but it has been outpaced by smaller, more trade-focused economies.
Why this chart It puts India’s export size in the context of its manufacturing rivals, showing the scale of the challenge.
How to read it A logarithmic scale might be needed to fit all lines on one chart, else the smaller ones compress. China’s line will dominate.
Watch out Dollar values can be inflated by commodity prices or exchange rates. Real export growth (volume) may differ.
How protected are different sectors by India’s import tariffs?
The MFN tariff averages 16.2% for all products, but the sector breakdown reveals sharp variation. Agricultural products face an average tariff of 36.7%, while non-agricultural products are at 13% (both in 2024, barely changed since 2005). High farm tariffs shield millions of smallholders but also raise food prices and limit trade in a sector where India could have a comparative advantage. The uneven protection shapes which industries can access cheaper foreign inputs and which cannot.
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India's import tariffs
Agricultural tariffs average 36.7% in 2024, more than double the 13% on non-agricultural goods.
WTO · MFN applied tariff, simple average
% (simple average)
All productsAgricultureNon-agriculture
About this chart
Three lines track the simple average MFN tariff for all products, agriculture, and non-agriculture from 2005. The agricultural line is consistently highest, hovering around 37% with little change. Non-agricultural tariffs have come down from 16.4% to 13%. The overall average (16.2%) is pulled up by the high farm duties. This sectoral split reveals the political economy: farm lobbies are strong and resist tariff cuts. However, high agricultural tariffs also mean Indian consumers pay more for food and miss opportunities to export processed agro-products competitively.
Why this chart It unpacks the headline tariff to show where protection is concentrated, explaining part of why India trades less in certain sectors.
How to read it The spread between the agricultural line and the others indicates the extra protection farming gets. The convergence of non-agri with all-products after 2015 shows agriculture’s weight.
Watch out These are simple averages; trade-weighted averages for agriculture could be even higher because many high-tariff items aren't imported much.
What is India’s share of world imports?
India’s share of world merchandise imports was 2.8% in 2025, up slightly from 2.3% in 1948. That makes India the world’s sixth-largest importer by share, behind China, the US, Germany, Japan, and the UK. As a buyer, India’s weight is growing, driven by rising demand for energy, electronics, and capital goods. This import heft gives India some negotiating power, but it also reflects a persistent merchandise trade deficit, India imports more than it exports.
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India as a global buyer
India’s share of world merchandise imports rose from 2.3% in 1948 to 2.8% in 2025, making it the sixth-largest importer globally.
UN Comtrade
% of world
About this chart
This single line charts India’s import share since 1948. It declined in the post-independence decades, hit a low in the early 1990s, and then rose steadily as economic growth accelerated. The current 2.8% is the highest in history, reflecting India’s voracious appetite for oil, electronics, gold, and capital goods. Being a large buyer gives India some leverage in trade negotiations, but it also reflects a persistent merchandise trade deficit. The upward trend underlines India’s integration into the global economy primarily as a consumer of goods.
Why this chart It shows India’s growing weight as a customer, a important counterpoint to the export-focused narrative.
How to read it A rising line indicates India is absorbing a larger slice of world imports. The slope steepened after 2000.
Watch out Import share does not measure absolute import volume; world imports also grew rapidly, so India’s share rising means it grew faster than global trade.
How high-tech are India’s manufactured exports?
High-technology exports, as defined by the World Bank, made up 18.6% of India’s manufactured exports in 2024, up from 9.6% in 2009. The growth is promising, but the level remains low compared to countries like South Korea or China, where high-tech goods often exceed 30% of manufactured exports. India’s figure includes pharmaceuticals and certain engineering products, but large slices of electronics and aerospace are still missing. The upward trend suggests slow diversification, but the share is not yet transformative.
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How high-tech India's exports are
High-technology exports accounted for 18.6% of India’s manufactured exports in 2024, up from 9.6% in 2009.
World Bank
% of manufactured exports
About this chart
This line shows the high-tech share of manufactured exports from 2009. The share has doubled in 15 years, driven by growth in pharmaceuticals and certain engineering products. However, 18.6% is still modest; many East Asian economies exceed 30%. The chart reveals a slow but steady shift toward higher-value goods. The data includes products like aerospace components, computers, pharmaceuticals, and scientific instruments. Missing are the massive electronics assembly exports that dominate Vietnamese or Chinese high-tech baskets. India’s trajectory is upward but not steep enough to change the narrative quickly.
Why this chart It addresses the modernisation angle: is India moving up the value ladder in what it sells? Slowly, yes.
How to read it An upward line is good. The steeper the line, the faster the shift. The plateau after 2019 is notable.
Watch out The definition of high-tech is fixed by the World Bank and may miss recent innovations in software or AI-embedded products.
Tell me what this means, bro
Okay, but what does this actually mean, macha?
In simple terms, India sells a lot to the world, $445 billion worth of goods in 2025, but its slice of the global pie is smaller than it was 75 years ago. While China and Vietnam grabbed huge chunks by making things the world wanted, India got left behind because of high tariffs, less openness, and not joining global supply chains. Our export strengths are still in old-school stuff like textiles and medicines, not in cutting-edge electronics or machines. The good news? India’s exports are getting a bit more sophisticated and ports are better connected. But we have a long way to go to catch up with our Asian neighbours.
India’s trade story is one of missed chances and slow catch-up, rules and structure still keep it from its full potential.॥
Plain English concepts
Terms of trade
Think of it as the 'exchange rate' between what India sells to the world and what it buys. An index value of 92.5 means that for every ₹100 worth of goods India exported in 2015, it could buy ₹100 of imports. Now, it can buy only ₹92.50 worth. So it measures buying power. It counts the average price of all exports divided by the average price of all imports, set to 100 in a base year. A rising line is good. It does not measure quantity or quality, just relative price changes.
This chart shows whether India is getting more or less for its exports, which directly affects national income and living standards.
Revealed comparative advantage (RCA)
Imagine a shop. If the shop’s share of total tea sales is bigger than the world average, it's 'specialised' in tea. RCA does that for countries and product categories. An RCA above 1 means India exports more of that item as a share of its total exports than the world average. It reveals a strength, not by looking at costs, but by actual trade patterns. It does not mean India is the best at it, just that it focuses more on it.
The RCA chart shows exactly which products India punches above its weight in, and where it lags. The numbers explain why India’s export basket is often called traditional.
MFN tariff (Most Favoured Nation)
Imagine a club where every member gets the same entry fee unless you have a special pass. In trade, MFN tariff is the baseline fee a country charges on imports from all WTO members, before any special deals. It’s called 'most favoured' because it guarantees no country gets charged more than another (except in free trade agreements). It counts the average tariff rate across all products. It does not include anti-dumping duties or quotas.
India’s MFN tariff is compared with peers to show how protected its market is, a key part of why it trades less.
Economic Complexity Index (ECI)
If a country’s exports are like a CV, ECI grades how skilled and varied the jobs are. A high ECI means the country makes many different sophisticated products that few others can make. It counts the diversity of exports and the uniqueness of each product. A low ECI suggests a narrow or simple export basket. ECI is a proven predictor of future growth, but it doesn’t measure income or happiness directly.
India’s ECI is shown alongside Asian competitors to reveal the gap in export know-how. The low score helps explain why India’s growth hasn’t been export-led.
Foreign value added in exports (backward GVC participation)
Modern products are like a neighbourhood potluck, everyone brings an ingredient. When India exports a car, some of its value comes from imported steel, electronics, or chips. Foreign value added measures the share of an export’s value that was imported. A rising share means India is plugging into global supply chains more. It does not mean India is being cheated; it means it specialises in some stages and imports others.
This number shows how much 'Make in India' is tied to imported parts. It connects to the global value chain narrative and the changing nature of trade.
Liner Shipping Connectivity Index
Think of it as a city’s bus route score, more buses, frequent trips, bigger buses mean better connectivity. LSCI measures how many container ships visit a country’s ports, how many shipping lines operate, and how large the vessels are. A higher score means cheaper and faster access to world markets. It counts actual ship calls, not port infrastructure. It doesn’t measure customs efficiency directly.
This chart is the physical side of trade competitiveness. Even with good products, if ships don’t come often, exports get delayed and costly.
The data behind this article
Built from 51 data series across 6 sources, with data through 2026.
Bhuvanesh. “How competitive is India's trade with the world?” This Indian Life, October 2026. https://thisindianlife.today/articles/how-competitive-is-indias-trade-with-the-world/
BibTeX
@misc{tilife-howcompetitiveisindiastradewiththeworld,
author = {Bhuvanesh},
title = {How competitive is India's trade with the world?},
year = {2026},
publisher = {This Indian Life},
url = {https://thisindianlife.today/articles/how-competitive-is-indias-trade-with-the-world/}
}
APA
Bhuvanesh. (2026). How competitive is India's trade with the world? This Indian Life. https://thisindianlife.today/articles/how-competitive-is-indias-trade-with-the-world/