“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.
August 30, 2026 3.1K 6
