Q19.What are the challenges before the Indian economy when the world is moving away from free trade and multilateralism to protectionism and bilateralism? How can these challenges be met?

The global economic landscape is witnessing a significant shift from free trade and multilateralism towards protectionism and bilateralism, driven by geopolitical tensions and nationalistic policies. This paradigm shift presents both challenges and opportunities for emerging economies like India.

• Reduced export growth and market access due to rising tariffs and non-tariff barriers.
• Disruption of global supply chains, impacting manufacturing and foreign direct investment inflows.
• Increased cost of critical imports and potential for trade wars, affecting overall economic stability.

• Diversify export markets and products, focusing on high-value and niche sectors, supported by robust R&D.
• Strengthen domestic manufacturing capabilities under Aatmanirbhar Bharat, improving competitiveness and ease of doing business.
• Actively pursue new bilateral and regional trade agreements while constructively engaging in multilateral forums to advocate for rule-based trade.

Navigating this evolving global trade order requires a strategic, multi-pronged approach combining domestic resilience with proactive international engagement to secure India's economic interests.