GS3 · 10 marks · 150 words

How do the rising trends of economic nationalism and protectionism affect India's global trade competitiveness? What recent measures has India taken to navigate these challenges?

Answered by 4 toppers · CSE 2023–2025

Trade and Foreign InvestmentMacroeconomic IndicatorsIndustrial Policy and LiberalisationCrops and Cropping PatternsInclusive Growth

Syllabus: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

How toppers approached it

From all 4 answers · about 190 words · 50% drew a diagram.

Opening

  • A date or context3 of 4
  • No separate opening1 of 4

Body

  • Points and prose2 of 4
  • Points2 of 4

Close

  • No separate close2 of 4
  • A way forward2 of 4

The toppers’ answers

Pakshal SecretryAIR 8 · CSE 2025 · 159 wordsTheir whole copy

Opening · a recent event

Recently, Trump Administration (US) has imposed 25% tariff on all Indian imports, also there is rise of de-globalisation across world.

Body · points and prose

Impact on Competitiveness

  1. Higher Tariff on Indian goods → Less competitiveness.

  2. Trade Diversion from India to competitor (e.g., Vietnam, Bangladesh).

Diagram
[Graph of S and D curves with labels: Tariff, No Tariff, D, S, and shading labeled as Trade Diversion]

  1. Risk of Imported Inflation → would make our imported goods costly.

  2. Non-integration of India into global value chains.

  3. Will result in shifting of MNCs from India → onshoring in USA.

Opportunities

  1. China+1 opportunity
  2. Trade Deal → To Benefit from Trade creation
  3. Depreciation of Rupee → Competitive exports

Measures Taken

  1. FTA with UK & EFTA → 0 duty access.

  2. PLI scheme to reap "China+1" opportunity.

  3. RODTEP Scheme → Make exports competitive.

  4. Negotiation for BTAs with USA & FTA with EU.

  5. Structural Reforms & Labour laws.

Close · a way forward

India needs to Capitalise on "make in India for the world" to increase our share in export to 6%.

More on Trade and Foreign Investment

Exports and imports, FDI and FPI, trade agreements, tariffs, supply-chain relocation, WTO disputes as they bear on the Indian economy.

All GS3 questions on Trade and Foreign Investment