NITI Aayog Trade Watch Quarterly

NITI Aayog’s Trade Watch Quarterly report shows a decline in HHI for India’s exports, indicating increasing diversification across products and regions. The assessing trade resilience and export patterns.

Herfindahl–Hirschman Index (HHI) in Trade:

Dimension	Key Details
Definition	Herfindahl–Hirschman Index measures the dispersion of trade value across an exporter’s partners.
Computation	HHI is calculated as the sum of the squares of the share of each trade partner in total trade.
Interpretation	Higher HHI indicates greater concentration while lower HHI indicates higher diversification.
Current Trend	HHI for India’s exports is declining, indicating reduced concentration across products and regions.
Trade Resilience	Lower trade concentration reduces exposure to region-specific and product-specific shocks.
Sector Highlight	India’s gems and jewellery exports excluding raw gold account for 7.8% of the global market share.
External Factor	Instability in West Asia has slowed cooperation on the India–Gulf Cooperation Council Free Trade Agreement.