India's trade policy challenges in a changed world

A slowdown in global trade is nothing new, but the cumulative impact of unprecedented and unforeseen events requires a new policy approach from India

Global merchandise trade volume is predicted to lose momentum sharply in 2023 because of adverse developments, such as marked slowdown in the major economies of Europe, China and the United States; food and fuel inflation-led surges in the cost of living and manufacturing; tight monetary policy conditions in most countries; and continued supply chain disruptions. So, world trade growth is projected to slump from 3.5 per cent in 2022 to barely 1 per cent in 2023 (WTO press/909, October 5, 2022).

However, a slowdown in global trade is not new. Ever since the restructuring of global value chains (GVCs), the principal