Much remains to be done to boost trade competitiveness, says survey
New Delhi: The Economic Survey on Friday called for a new strategic trade roadmap for India, along with measures to cut trade costs and enhance export competitiveness amid growing protectionism globally.
It said that much remains to be done to enhance trade competitiveness.
“Global trade dynamics have changed significantly in recent years, shifting from globalisation to rising trade protectionism, accompanied by increased uncertainty. This calls for a new strategic trade roadmap for India,” said the Economic Survey 2024-25 which was tabled in the Parliament by Finance Minister Nirmala Sitharaman.
It added 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. “The good news is that doing so is entirely in our hands. On its part, the industry must continue to invest in quality,” it said, adding the country’s external sector continued to display resilience amidst global headwinds of economic and trade policy uncertainties.
The pre-Budget document emphasised the need to assess the global situation and develop a forward-looking strategic trade roadmap to deal with the evolving global trade dynamics, marked by gradual shifts towards greater protectionism.
“To strengthen its competitiveness and further integrate into global supply chains, the country can focus on reducing trade-related costs and enhancing export facilitation to create a more vibrant export sector. This proactive approach will help India continue to thrive in an ever-changing global market,” the survey said.
As per estimates, India’s share of global trade was over 2 per cent in 2023.
During the April-December period of this fiscal year, exports recorded a growth of 1.6 per cent to $321.71 billion and imports by 5.15 per cent to $532.48 billion. Trade deficit — the difference between imports and exports — during April-December widened to $210.77 billion from $189.74 billion during the same period of the previous fiscal year.
