India's growth remains strong, but trade barriers threaten 2047 goal: WTO

India’s economic growth has continued to show strength, but the World Trade Organisation (WTO) has raised concerns that persistent trade barriers could hinder the country’s ambitions of becoming a developed nation by 2047. In its latest Trade Policy Review (TPR) report, the WTO outlined both achievements and challenges in India’s trade landscape, highlighting the need for structural reforms to sustain long-term growth and enhance global integration. The report stated that India remains the fastest-growing G20 economy, with real GDP growth projected to stay within the range of 6.8% to 7.2% for fiscal year 2027–28. This marks a continuation of the robust economic performance observed during the review period. However, the WTO cautioned that achieving the government’s vision of “Viksit Bharat”, a developed India by 2047—will depend on overcoming structural challenges. These include high trade costs, regulatory complexity, infrastructure deficiencies, and obstacles to deeper participation in global markets. Among the key areas identified for improvement were India’s high tariffs, import and export controls, state trading mechanisms, and extensive subsidies for essential goods like food grains and fertilizers. The report noted that while India has made strides in financial inclusion and improved trade facilitation through digitalization, customs modernization, and liberalized foreign direct investment (FDI) policies, these measures alone may not be sufficient to ensure sustained growth. The WTO suggested that further administrative reforms, such as those under the Jan Vishwas (Amendment of Provisions) Acts, could play a crucial role in enhancing the ease of doing business, boosting productivity, and reducing dependence on restrictive trade practices. In addition to internal reforms, the report emphasized the importance of India’s strategy to deepen its integration into global trade networks. It noted that India has actively pursued free trade agreements (FTAs) as a means to secure better market access and align itself with international value chains. Currently, India has 19 active FTAs, and since 2021, it has signed or completed negotiations on eight major trade agreements. This effort reflects a broader shift toward securing durable market access, lowering both tariff and non-tariff barriers, and strengthening connections with regional and global trade systems. India’s export figures also reflect this trend, with combined merchandise and services exports reaching a record $863.1 billion in 2025–26—an increase of 6.3% compared to $676.5 billion in 2021–22. Despite these gains, the WTO warned that external factors continue to pose risks to India’s trade performance. Recent years have seen disruptions caused by the ongoing effects of the Covid-19 pandemic, rising geopolitical tensions, climate-related issues, and export restrictions imposed by other nations. These developments have strained global supply chains and made certain inputs less accessible and more expensive for Indian industries. Furthermore, the report highlighted the increasing use of non-tariff measures by some trading partners, such as stringent product standards, complex conformity assessments, and regulatory hurdles. These measures have limited market access for Indian exporters, creating additional challenges in expanding trade opportunities. Commerce Secretary Rajesh Agrawal reiterated India’s commitment to a rules-based, transparent, and development-focused multilateral trading system during the country’s eighth Trade Policy Review at the WTO. He underscored the significance of maintaining open and predictable trade environments as India works to balance its goals of self-reliance with greater openness to global markets. As India continues to navigate these complexities, the path forward will likely involve a combination of domestic reforms and strategic engagement with international trade frameworks.