The rise of the global South is radically reshaping the world and is perhaps the most significant development of recent times. As one of the fastest growing economies, India has emerged as the seventh largest economy globally. Moreover, India’s 16-rung leap in the recently released Global Competitiveness ranking by the World Economic Forum points towards its sharp focus on improving competitiveness.
As India began to enhance its competitiveness journey and given the new direction of its economic and political diplomacy, it has signed FTAs with some of the most important economies like Japan, Korea, Malaysia and the ASEAN countries in the last few years. It is also in the process of negotiating comprehensive trade agreements with EU, Australia, Canada and New Zealand. It has made its presence felt in alliances like the G-20, IBA, and BRICS and has also deepened relations with the East Asian countries. All this points towards India’s growing integration into the Global Economy.
While Indian industry has adapted well to the changing global dynamics, it needs to work hard to integrate itself into the global value chains (GVCs) to boost its global trade, and the country’s economic development.
This edition of Policy Watch looks at some of the important issues that continue to impact the overall trade performance of India and highlights key policy interventions that need to be taken up on priority.