Category: international trade
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Export Promotion Mission: A ₹25,000 Crore Push to Shield Indian Trade
India’s export sector is entering a critical phase as global markets are reshaped by protectionist measures, rising tariffs, and tightening supply chain dependencies. Recognising these headwinds, the Government of India has rolled out the Export Promotion Mission (EPM), a ₹25,000 crore package spanning 2025–31. This mission aims not only to…
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Rising Logistics Costs: A New Challenge for Small Exporters to the U.S.
The abolition of the U.S. de minimis exemption has reshaped the landscape for small exporters and MSMEs shipping to America. Once a lifeline for e-commerce-driven trade, the de minimis rule allowed packages valued under $800 to enter the U.S. duty-free, with minimal customs paperwork. For thousands of Indian MSMEs and…
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India–China Trade Deficit: Why Recalibration Is Urgent
India’s economic engagement with China has long been defined by asymmetry, but the latest numbers show just how stark that imbalance has become. A recent study by the Indian Council for Research on International Economic Relations (ICRIER) highlights that India’s trade deficit with China has soared to $99.2 billion in…
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Foreign Direct Investment in EMDEs: Trends, Challenges, and the Way Forward
Foreign direct investment (FDI) inflows to emerging market and developing economies (EMDEs) have been on a steady decline as a share of GDP since the global financial crisis. In the boom years of the 2000s, FDI inflows reached nearly 5% of GDP in a typical EMDE by 2008. Today, they…
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Tariff Turbulence: How U.S. Tariffs on Indian Goods Are Reshaping India’s Economy
On 7–8 August 2025, the United States sharply escalated its trade dispute with India. President Donald Trump announced an additional 25-percentage-point duty on Indian goods because New Delhi continued to buy discounted Russian oil. Added to a 25 % levy imposed in April, this raised the total tariff on several…
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Strategic Shifts in the Global Economy and India’s “Make in India” Drive
The interplay of global economic forces—most notably the ongoing U.S.–China tariff tensions, evolving inflationary trends, and the reshaping of supply chains—is redefining the strategic contours of India’s economic landscape. These shifts present both opportunities and challenges for India’s Make in India initiative, which aims to position the country as a…
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India’s Fiscal Policy in the Shadow of New U.S. Tariffs: Balancing Growth and Stability
The sharp escalation of U.S. tariffs—now set at 50% on a substantial portion of Indian goods—marks a pivotal moment for India’s fiscal strategy. With USD 30–35 billion worth of exports directly affected and potential spillovers across the broader USD 87 billion trade relationship, policymakers face an immediate test in safeguarding…
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The Shifting Future of Foreign Aid: From Post-War Solidarity to a Fragmented Global Order
Foreign aid is undergoing a transformation that is both structural and strategic. The post-war model—where a handful of wealthy nations set the tone for global development through consistent, large-scale official development assistance (ODA)—is rapidly eroding. Declining donor commitments, rising localization, and the entry of new private and non-traditional actors are…
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Are We Witnessing the End of FTAs and the Rise of Bilateralism?
For decades, free trade agreements (FTAs) and large regional trade blocs have been the hallmark of global economic integration. From the European Union’s single market to NAFTA (now USMCA), from ASEAN’s free trade framework to the African Continental Free Trade Area (AfCFTA), the dominant narrative was clear: bigger is better…
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“US Tariffs on $40 Billion Indian Imports: The Most Exposed Sectors”
The United States’ recent tariff hikes on roughly $40 billion worth of Indian imports have put multiple high-value sectors at risk, exposing deep interdependencies between the two economies. While the political narrative frames these measures as a push to protect American manufacturing and encourage domestic sourcing, the reality is far…
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