India’s Trade Deficit Worsens as Firm Capabilities Lag, According to New Study

India’s trade deficit deepened last year, according to a new analysis by The Policy Edge, which links the gap to a stark shortfall in the capabilities of domestic firms, particularly in export readiness.

The study points to a combination of skill shortages, limited access to advanced manufacturing technologies, and difficulties in scaling production as key factors that curb firms’ ability to compete internationally.

With exports stagnating and imports continuing to rise, the deficit threatens India’s economic stability and competitiveness. The findings suggest that addressing these capability gaps through targeted skill development, technology adoption, and supportive policy frameworks could help reverse the trend. Source: Google News – Manipal.