Indian Policymakers Concerned About Drop in Indian Trade Competitiveness3-mins read

Declining Indian Competitiveness: A Cause for Concern?

India, and its skyrocketing stock market, is a country with tremendous potential for economic growth and development, but its approach to international trade could be hindering its progress. While many countries view trade as a key driver of economic growth, India seems to be more focused on its domestic market. This approach may have worked in the past, but in today’s globalized economy, it is important for countries to participate in international trade to reach their full potential.

The recently released trade policy in India highlights this issue. The policy does not show any evidence of a rethinking of the country’s approach to trade. It is a dry recitation of local laws and processes with no analysis of global economic systems or how India might fit in. This lack of analysis suggests that Indian policymakers do not believe that the country could become a great trading nation.

Moreover, the Indian government’s approach to trade has been criticized for being incoherent and even contradictory. While the country could become a valuable candidate to help reduce the West’s dependence on China, the trade policy does not show any attempts to develop a deeper and more meaningful relationship with its trading partners. This attitude suggests a lack of confidence in the Indian people and their ability to compete with other countries.

Global Conditions to Blame?

The Indian government’s reluctance to engage with the global economy could hinder the country’s economic growth and development in the long term. As other countries invest in building redirected, resilient supply chains, India could be left behind. This could result in lost opportunities for job creation and economic growth.

In contrast, countries that actively engage in international trade have been able to realize significant benefits. For example, China’s growth over the past few decades has largely been driven by its export-oriented model of economic development. By specializing in producing goods for export, China was able to create large industries and generate employment, leading to significant improvements in living standards for its citizens.

Overall, India’s approach to international trade seems to be hindering its potential for economic growth and development. The government’s reluctance to engage with the global economy could result in missed opportunities for job creation, economic growth, and improvements in living standards for its citizens.