The article discusses the current state of global trade amidst rising nationalism, protectionism, and bilateral trade agreements. Despite fears that these trends would diminish global trade, data shows an increase in bilateral agreements and cross-border investment flows, with global trade valued at over $35 trillion in 2025, up from just under $33 trillion in 2024.
Key points include:
– The post-Trump era has seen nations focusing more on self-reliance and inward-looking policies, prompting a resurgence in bilateral trade deals rather than a decline in global trade.
– India has successfully navigated these changes, securing non-US agreements with entities like the UK, Australia, and the EU, positioning itself as a player despite challenges such as American tariffs.
– While there is optimism regarding trade growth, specific sectors in economies, including agriculture and manufacturing, may face adverse impacts from cheaper imports and heightened competition.
– The dynamics of global investment have also shifted, influenced by geopolitical factors, aiming for higher returns in developing economies that offer favorable conditions for investors.
– Lastly, the article acknowledges that while the current environment poses challenges, it also allows nations to adapt and potentially benefit from the new reality. It concludes that India must attract investment to counterbalance any negative effects of bilateral trade agreements.
