The re-politicisation of trade

The global economic order is being rewritten.

- Shivaji Sarkar

Wars in Europe and West Asia, US-China rivalry, the return of tariffs, and the erosion of multilateral institutions have turned trade into an arena of power rather than rules.Trade is now about security, resilience, and influence as much as growth. For India, this presents both a strategic challenge and an opportunity.

Until a decade ago, global trade was anchored in gradual liberalisation under the WTO, with major economies tolerating asymmetries in the name of development. That consensus has collapsed. Protectionism and economic nationalism are back, and globalisation is now viewed with growing scepticism.

Would BRICS be a choice? It is thawed for now with US super-ac-tivism. Venezuela was struck for trying to get closer to BRICS as also trading its oil in yuan and rouble. And India conveniently put off the military drill by the BRICS partners off the South African coast. Amid this India’s 7.4% growth is an achievement over not so high growth during the period in the previous year. The country needs 8 plus percent growth continuously. It also has to reduce its tax rates and work for faster growth. Rail fares were raised twice in a year. Taxes on several products increased to generate additional revenue for reducing deficit.