New strategic trade plan required time

Economic review has emphasized the need to create a new strategic trade plan for India in the economic review due to increasing uncertainty with protectionism amid changes coming in global trade dynamics. It states that India will have to remain competitive to deal with the situation and increase its participation in the global supply chain. Also, it should improve export facilities by reducing trade costs. The good thing is that if the government and private sector emphasize quality as well as efficiency, then despite all the business concerns, India can increase its share in foreign markets.

Economic reviews have warned that tariffs have declined globally but, non -tariff policy measures have increased in all countries. Especially after the first Kovid 19 and then the Russia-Ukraine War started further. The purpose of implementing non-tariff policies by various countries is to protect the environment and public health, but often these measures for exporters increase compliance costs.

The Economic Review states that non -tariff measures related to climate change launched by the European Union can later harm exporters to emerging economies such as China, India and Turki. This includes business policy restrictions such as carbon border adjustment mechanism (CBAM) and EU Deforestation Regulation (EUDR).

The review also states, ‘In short, it is difficult to reach out to the conclusion right now that CBAM and EUDR are both climate and business safety measures in the name of environment. Its sport and final goals are both uniform, but the strategy is constantly changing. The unique list of labor standard, gender, democracy, emission and deforestation will increase over time. Today’s developed countries are not following the rules that they expect from developing countries for the same phase as development. These guidelines may apply within a year. They are expected to disrupt India’s exports and increase the current account deficit. This is happening at a time when pure foreign direct investment (FDI) is continuously decreasing in the country due to the incentives given by many governments to exit foreign investors, to increase investment and increase interest rates.

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The economic review also highlights China’s increasing dominance in the global manufacturing and energy change scenario. For example, many solar energy equipment manufacturers today depend on the Chinese supply chain and the services associated with it. It also states, “India’s supply chain has become a risk of being affected by being focused on a single source for many products.” In addition, China’s major stake in the production and processing of important minerals such as Nikil, Cobalt and Lithium has also been underlined by China. Their global production in China is getting 65 percent, 68 percent and 60 percent processing respectively.

Customs have decreased between different countries due to pressure to increase cooperation in free trade and international trade policies. For example, between 2000 and 2024, the average tariff rate in India has come down from 48.9 percent to 17.3 percent.

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