India needs new strategic trade roadmap amid global uncertainty: Eco Survey

New Delhi: The Economic Survey 2024-25 called for a “new strategic trade roadmap” for India amid global trade dynamics shifting from globalisation to rising trade protectionism, accompanied by increased uncertainty.

It also said that government interventions, including non-tariff measures (NTM), reinforce the change in bilateral trade patterns due to geopolitical considerations. The rise in NTMs, which began after the COVID-19 pandemic, was further fuelled by the conflict between Russia and Ukraine, according to the survey.

It said if the government and the private sector focus on quality and efficiency, then despite the trade tensions and protectionism that are likely to come in the way of expanding global trade, India can increase its share in overseas markets and generate resources to sustain a higher level of capital formation.

Noting that “much remains to be done to enhance trade competitiveness”, the survey said that to remain competitive and enhance its participation in global supply chains, India must continue reducing trade costs and improving facilitation to boost export competitiveness.

As per the survey, India’s external sector continued to display resilience amidst global headwinds of economic and trade policy uncertainties. Total exports (merchandise and services) have registered a steady growth in the first nine months of FY25, reaching $602.6 billion (6%). Growth in services and goods exports, excluding petroleum and gems and jewellery, was 10.4%. Total imports during the same period reached $682.2 billion, registering a growth of 6.9% on the back of steady domestic demand.

“The evolving global trade dynamics, marked by gradual shifts towards greater protectionism, require assessing the situation and developing a forward looking strategic trade roadmap,” it said, and insisted that industry must continue to invest in quality.