Risks from trade tremors warrant close monitoring: Finmin report

• Calls for domestic reforms, investment in manufacturing

- FE BUREAU

RISKS FROM ONGOING global trade disruptions warrant close monitoring and diversification into various unexplored markets, the finance ministry said in a report on Tuesday.

While merchandise exports may face pressure due to global uncertainties, services exports will likely maintain resilience, it said.

"However, global uncertainties, such as trade tensions and geopolitical risks, could disrupt supplies or cause prices to rise or both," the finance ministry's economists said in the report.

Nevertheless, while geopolitical uncertainties present challenges for India too, they also offer an opportunity to strengthen its position in international trade and manufacturing by leveraging its comparative advantages in select goods and services, according to the report.