New Delhi [India], January 31 : The Economic Survey 2024-25 has emphasized the need for India to remain competitive in global markets by reducing trade costs and improving trade facilitation.
The report highlighted that for the country to be competitive in the global market it should focus on enhancing participation in global supply chains is crucial for boosting export competitiveness.
The report said, "To remain competitive and enhance its participation in global supply chains, India must continue reducing trade costs and improving facilitation to boost export competitiveness".
On global trade dynamics the survey noted that the over the years, global trade dynamics have shifted from globalization to increasing trade protectionism, leading to uncertainty in international markets. This situation calls for India to adopt a strategic trade roadmap to navigate these challenges.
The survey stated that while significant progress has been made, the survey states that more efforts are required to improve trade competitiveness. However, it reassures that achieving this goal is within India's control.
The survey underlined the distinct roles of the government and private sector in strengthening trade competitiveness.
The report said, "The state produces governance, and the private sector produces goods and services. If both these actors focus on quality and efficiency, then despite the trade tensions and protectionism that are likely to come in the way of expanding global trade"
Survey noted that if both prioritize quality and efficiency, India can overcome trade barriers and expand its presence in global markets. This, in turn, would generate resources for higher capital formation, helping the country achieve sustained economic growth.
Despite unfavorable geopolitical conditions, India's external sector has performed well. Merchandise exports have shown moderate growth due to sluggish global demand, but merchandise imports have increased significantly, driven by strong domestic demand.
The survey highlighted that rising net services receipts and growing remittances have helped offset the impact of a widening merchandise trade deficit.
By addressing trade costs and focusing on efficiency, India can strengthen its global position and unlock long-term economic growth. The survey suggests that a combined effort from both the government and industries will be key to navigating the challenges of the evolving global trade landscape.
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