India's Trade Hesitancy Can Undermine Global And Regional Standing

India's global trade posture is facing its most complex test in years.

- SAHASRANSHU DASH

With retaliatory tariffs now filed at the WTO, a high-stakes deadline approaching with the United States, and rising regulatory pressure from Europe, the country's ability to strike a balance between sovereignty and global integration is under scrutiny. At the same time, an inherent dependence on China continues to constrain India's room for maneuver.

The rest of 2025 may well decide whether India becomes a rule-shaper in global trade-or remains a reactive player in an increasingly fragmented world.

US Deadline and WTO Retaliation

On May 3, the U.S. imposed a 25% safeguard tariff on Indian auto exports, citing national security concerns. In response, India has filed a formal complaint at the World Trade Organization (WTO) and notified its intent to impose retaliatory duties on U.S. imports worth $725 million-a rare but significant escalation