At the virtual BRICS summit convened to discuss global trade disruptions, EAM stressed that economic practices must be fair and transparent.
Emerging Challenges for Global Trade
- Protectionism & Tariffs: The U.S. imposed 50% tariffs on Brazil and India (2025), undermining the WTO’s rules-based system.
- Weak Multilateralism: Institutional paralysis at the World Trade Organisation and political gridlocks within the UN are obstructing long-pending reforms.
- Supply Chain Fragility: Shocks from COVID-19, Geopolitical conflicts (E.g. Ukraine war), selective sanctions, crisis in key maritime zones (E.g. Red Sea crisis) exposed global vulnerabilities and fuelled volatility in trade and energy markets.
- Other: Food, Energy & Fertilizer Insecurity in global south, Extreme events combined with measures such as the EU’s carbon border tax.
Proposed Way Forward for India
- Resilient Supply Chains: Diversify hubs, as seen in India’s Act East policy and Quad supply chain initiative.
- Reform Multilateralism: Revive WTO and UN processes (e.g., stalled WTO Appellate Body) to uphold fairness.
- Consideration of refashioning trade ties: With neighboring countries, especially China
- Aatmanirbhar Bharat Acceleration: Simplify business hurdles, reduce bureaucratic costs, and ensure a stable policy environment.
- Other: Negotiating FTAs with other countries, export promotion by exploring new markets, Supporting the Global South etc.
