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    • Trade and development

    Opinion: India’s trade caution risks undermining development goals

    As India negotiates a tariff deal with the United States, its trade strategy is at a crossroads. The country's approach to free trade agreements will determine its progress on development goals and its role in the global economy.

    By Sahasranshu Dash // 17 July 2025

    India’s global trade strategy stands at a pivotal moment. As the country negotiates a tariff deal with the United States, it must consider the role free trade agreements can play in terms of boosting trade and rural income, and infrastructure, health, and energy projects.

    After years of hesitation, recent free trade agreements, or FTAs, between India and the United Arab Emirates, Australia, the United Kingdom, and the European Free Trade Association suggest growing openness. But the shift remains incomplete — and a rapidly narrowing window may determine whether India embraces integration or falls back into caution.

    The development stakes are high: greater openness could unlock vital progress on employment, rural livelihoods, climate finance, and industrial upgrading — while delaying risks widening inequalities and undercutting India’s growth potential.

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    Read more:

    ► US tariffs threaten to push debt-distressed nations closer to the brink

    ► Inside the United States’ new ‘trade, not aid’ strategy in Africa

    ► Tariffs and aid cuts jolt Africa’s growth — but the overall outlook is upbeat

    • Trade & Policy
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    The views in this opinion piece do not necessarily reflect Devex's editorial views.

    About the author

    • Sahasranshu Dash

      Sahasranshu Dash

      Sahasranshu Dash is a senior economist and research partner at the South Asia Institute of Research and Development in Kathmandu, Nepal. His work focuses on trade strategy, inclusive growth, and sustainable development across South Asia, with an emphasis on India’s global economic engagement.

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