World Bank President Ajay Banga has urged India to focus on expanding trade opportunities rather than relying on tariff protection. Speaking in Bhubaneswar, he emphasized that while tariffs have traditionally been used to regulate trade, long term growth comes from building strong trade relationships and engaging with global markets. His remarks coincide with India signing several regional and bilateral trade agreements, including a major pact with the European Union that aims to enhance market access.
Banga highlighted that global trade has evolved significantly over the past two decades, with emerging markets capturing a larger share of international commerce. He noted that India has signed over one hundred trade agreements and should leverage these to access new markets and investment opportunities. Prioritizing broader engagement can help boost exports, attract investment, and increase competitiveness.
He also pointed to the India EU free trade agreement as an example of how partnerships can create access to large consumer markets and support economic growth beyond short term tariff considerations. Banga stressed that lowering tariff and non tariff barriers is important but should be part of a wider strategy focused on trade expansion and global integration.
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