India Faces Globalisation Challenges, Urged to Strengthen Economic Resilience

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India's globalisation-driven growth is encountering new challenges, prompting calls for strategic preparedness. As international trade slows and geopolitical shifts reshape economic landscapes, experts emphasize the need for policy reforms to sustain India's economic momentum.

Globalisation has historically fueled India's growth, lifting its annual GDP rate from 3.5 percent in the pre-liberalization era to nearly 6.5 percent since the 1990s. However, recent trends indicate a slowdown in global trade, with the International Monetary Fund projecting world goods and services trade to grow by just 1.7 percent in 2025, significantly lower than previous decades.

The decline in trade is attributed to structural and policy-induced factors, including rising protectionism and trade tensions between major economies. The United States has increased its average tariff rate to 28 percent, the highest since 1901, while concerns over Chinese trade practices continue to influence global markets.

India's economic stability remains a key advantage, but experts warn that external uncertainties could impact investment and employment. Policymakers are urged to focus on improving the ease of doing business, reducing compliance burdens, and fostering domestic innovation to counter global headwinds.

Key Highlights of India's Globalisation Challenges

- India's globalisation-driven growth faces hurdles amid slowing international trade.
- IMF projects world trade growth at 1.7 percent in 2025, significantly lower than past decades.
- Rising protectionism and trade tensions contribute to economic uncertainties.
- US tariff rates reach 28 percent, impacting global trade dynamics.
- Experts call for policy reforms to strengthen India's economic resilience.

Sources: Indian Express, Economic Times, IMF Reports, World Trade Organization, Business Standard