Trade wars undermine the gains of globalisation. Discuss their… — UPSC Economy — Reddy Sir — TG.ME

“Trade wars undermine the gains of globalisation. Discuss their implications for India.” Answer structure Introduction: Trade wars represent a shift from rules-based trade liberalisation towards protectionism and strategic economic competition. Challenges for India: • Export uncertainty • Pressure on labour-intensive sectors • Supply-chain disruption • Dumping • Inflation • FPI volatility • WTO challenges Opportunities: • China+1 • FDI inflows • Manufacturing • Export diversification • Supply-chain integration • Greater domestic value addition Way forward: • Diversify export markets • Improve logistics and competitiveness • Negotiate FTAs • Strengthen trade remedies • Support affected MSME exporters • Integrate with global value chains • Defend multilateral rules through WTO Conclusion India should avoid both protectionist isolation and excessive external dependence; the optimal strategy is competitive integration—using trade agreements, domestic competitiveness and diversified supply chains to convert trade fragmentation into an opportunity.