According to the latest Trade Policy Review (TPR) report of the World Trade Organization (WTO), India will need to address structural challenges such as high trade costs, regulatory complexity, infrastructure gaps and barriers to deeper global integration if it is to achieve its ambition of becoming a developed nation by 2047.The report said India remained the fastest-growing G20 economy during the review period and is expected to maintain its strong momentum, but warned that sustaining this growth over the long term will require deep structural reforms to improve competitiveness and attract more investment.
What has been said in the WTO report?
According to the Trade Policy Review report prepared by the WTO Secretariat, India’s real GDP growth is estimated to be between 6.8% and 7.2% in FY 2027-28, continuing the strong performance recorded during the review period.“Looking ahead, sustaining the strong economic performance needed to reach the vision of a developed India by 2047 will require addressing structural challenges, including high trade costs, regulatory complexity, infrastructure gaps and barriers to deeper global integration,” the report said.WTO acknowledged India’s progress in financial inclusion and noted improvements in trade facilitation through digitization, customs modernisation, liberalization of foreign direct investment (FDI) rules and expansion of regional trade agreements.However, it also points out that India’s policy framework includes relatively high tariffs, import and export controls, state trade measures, and extensive budgetary support programs, particularly for food grains and fertilizers.Building on administrative reforms, including the Public Trust (Amendment of Provisions) Act, efforts to improve ease of doing business, boost productivity and reduce reliance on trade-restrictive measures could help allocate resources more efficiently and attract foreign investment, according to the report.The WTO said that as India seeks to diversify exports and expand its role in global trade, balancing self-reliance with greater openness along with active participation in the multilateral trading system will remain important for future growth and economic resilience.
India’s FTA promotion and export growth
The report highlights that India has relied on free trade agreements (FTAs) to improve market access and integrate more deeply into global value chains.India currently has 19 active FTAs, and has signed or concluded negotiations on eight major trade agreements since 2021.“This new momentum reflects a strategic shift towards achieving sustainable market access, reducing tariff and non-tariff barriers, and connecting Indian exporters to regional and global value chains,” the report said.According to WTO, India’s combined goods and services exports to reach a record $863.1 billion in 2025-26, up 6.3% from $676.5 billion in 2021-22.
Global adverse conditions remain a matter of concern
The WTO said India’s trade performance in recent years has also been affected by external shocks, including the COVID-19 pandemic, geopolitical tensions, climate disruptions and export restrictions imposed by some countries.It said these developments disrupted global supply chains and increased the cost and availability of critical inputs for Indian industries.The report also highlights the increasing use of non-tariff measures by some trading partners, including complex standards, conformity assessment processes and regulatory requirements, which have hindered market access for Indian exporters.
India reiterates support for rules-based trade
Meanwhile, Commerce Secretary Rajesh Aggarwal reaffirmed India’s commitment to a transparent, rules-based and growth-oriented multilateral trading system during the country’s eighth trade policy review at the WTO.Sharing details of the opening day of the review, Agarwal said India’s economic journey during the review period was defined by “resilience, reform and renewed ambition” despite the challenging global environment.According to ANI, he said India remained the world’s fastest growing major economy during this period, while exports recorded an all-time high, digital transformation accelerated, ease of doing business improved and trade and investment opportunities expanded.“The trade policy review is an opportunity for members to understand the broader developmental context of our policy choices and engage in constructive dialogue. “I also reiterated India’s commitment to a transparent, rules-based and development-oriented multilateral trading system with the World Trade Organization at its core,” Aggarwal said.
What is WTO trade policy review?
Trade Policy Review is the WTO’s transparency mechanism under which member countries periodically review their trade policies.This exercise is conducted by the WTO’s Trade Policy Review Body and is based on two documents – a policy statement submitted by the country under review and an independent assessment prepared by the WTO Secretariat.Trade policy is reviewed in India once every five years. The latest review is the country’s eighth, covering the period from January 1, 2021, to December 31, 2025.
