A new report by NITI Aayog emphasizes the urgent need for India to move beyond basic assembly toward deep domestic value addition, component localization, and technology transfers in high-growth sectors like chemicals, textiles, telecom, and solar energy. Reflecting current trade dynamics, India’s merchandise trade deficit widened 31.5 percent year-on-year to $15 billion in July, driven by faster import growth despite record export levels. Broader macroeconomic data showed total merchandise and service imports reaching $95.16 billion in July, resulting in an overall monthly trade gap of $15.03 billion. To enhance market access under Free Trade Agreements, industry experts emphasize moving beyond simple tariff cuts to secure mutual recognition of testing, certification, and technical standards.