 "WTO lowers trade growth prospects for 2018; India says it could hurt all")
The WTO Thursday lowered growth projection for trade to 3.9 per cent from the 4.4 per cent estimated earlier for 2018, an estimate which India says needs to be taken seriously as slow rate of trade growth would hurt all countries.
"This warning needs to be taken very seriously by all countries, slowing global trade will hurt all, particularly the developing countries the most. Our efforts are on to safeguard our interests in these rising tensions, growing headwinds. WTO is very vital for global trade," Commerce and Industry Minister Suresh Prabhu said in a tweet.
The World Trade Organisation (WTO) said that escalating trade tensions and tighter credit market conditions in important markets will slow trade growth for the rest of this year and in 2019.
"Trade will continue to expand but at a more moderate pace than previously forecast. The WTO anticipates growth in merchandise trade volume of 3.9 per cent in 2018, with trade expansion slowing further to 3.7 per cent in 2019," the organisation said in a statement.
In April, the global trade rule making body has estimated 4.4 per cent growth for the current calender year.
It also said that monetary policy tightening in developed economies has also contributed to volatility in exchange rates and may continue to do so in the coming months.
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WTO Director General Roberto Azevedo said: "While trade growth remains strong, this downgrade reflects the heightened tensions that we are seeing between major trading partners".
He also said that now it is critical for governments to work through their differences and show restraint.
Further, the Geneva-based WTO said that geopolitical tensions could threaten resource supplies and upset production networks in certain regions.
Since 2011-12, India's exports have been hovering at around USD 300 billion. During 2017-18, the shipments grew by about 10 per cent to USD 303 billion.
Promoting exports helps a country to create jobs, boost manufacturing and earn more foreign exchange.