Walking the Trade Tightrope

Can India sustain its world-beating growth rate in an uncertain world? The Kautilya Economic Conclave offered a glimpse of the road ahead

- By HIMANI KOTHARI AND VASUDHA MUKHERJEE

When policymakers and economists from around the world gathered in New Delhi in early October to take stock of a shifting world, one sentiment kept resurfacing: India can no longer afford to look inward.

With US President Donald Trump doubling tariffs on some Indian exports to 50 percent, citing New Delhi's continued imports of Russian crude oil, the discussions at the Kautilya Economic Conclave 2025 were focussed on how to achieve resilient and inclusive growth during uncertain global times. Finance Minister (FM) Nirmala Sitharaman opened the summit by emphasising that “India does not want to shut itself and look inward”. This stance resonated across the halls, with many economists agreeing that the pace of India's economic growth will hinge on how decisively it opens up to the world through trade agreements.

Amid the growing tariff pressures, India is taking a more proactive stance in pursuing trade agreements, a shift that Erik Berglof, chief economist at Asian Infrastructure Investment Bank (AIIB), sees as a silver lining in an otherwise-disruptive environment.

"India now seems much more open to thinking about joining various trade agreements," Berglof told Forbes India on the sidelines of the summit. "That's a very good conversation to have. If something has come out of this tariff uncertainty, it is that it has accelerated this conversation in India compared to just a year ago."

World Bank's Chief Economist for South Asia Franziska Ohnsorge concurred. Asked if the tariffs may ultimately prove to be an opportunity, compelling India to pursue policy reforms and seek multiple trade agreements, Ohnsorge told