In a recent statement at the BRICS Finance Ministers and Central Bank Governors (FMCBG) meeting, Finance Minister Nirmala Sitharaman outlined India's strategy to combat trade restrictions through market diversification, infrastructure-led growth, and structural reforms aimed at enhancing competitiveness and productivity. Sitharaman emphasized the importance of BRICS as a platform for inclusive multilateralism, particularly when global institutions face legitimacy and representation challenges. She urged BRICS nations to lead by example through cooperation, advocating for credible reforms, and amplifying the voice of the Global South.
India's focus on diversifying its markets is a direct response to increasing protectionist policies worldwide. The government is actively pursuing new trade agreements and strengthening ties with existing partners to reduce reliance on specific markets. This approach aims to provide support to Indian exporters, especially Micro, Small, and Medium Enterprises (MSMEs), by easing access to credit, international factoring, and assistance in navigating non-tariff barriers.
Several trade agreements are expected to be finalized in 2025, including significant deals with the United States and the United Kingdom. India and the U.S. aim to double bilateral trade to US$500 billion by 2030 and are committed to negotiating a strong trade agreement. Negotiations between India and the UK concluded on May 6, 2025, with the finalized FTA set to provide Indian businesses with nearly tariff-free access to British markets. The agreement is projected to boost annual bilateral trade between India and the UK significantly and is a cornerstone of India-UK collaboration under the 2030 Roadmap.
India is also focusing on infrastructure development to drive economic growth and enhance trade competitiveness. The Union Budget 2025 positions exports as the fourth growth engine, with key initiatives aimed at achieving US$2 trillion in exports by 2030. The Export Promotion Mission, with a budget allocation of Rs 2,250 crore, aims to provide seamless access to export credit, enhance cross-border factoring support, and tackle non-tariff trade barriers. Furthermore, the government plans to incentivize key sectors that align with global demand patterns, ensuring that India supplies quality products and becomes an integral part of global value chains.
Structural reforms are another critical component of India's strategy to combat trade curbs. These reforms include rationalizing custom duties on key products such as electronics, seafood, and textiles to lower input costs and help Indian manufacturers scale up in international markets. The Foreign Trade Policy (FTP) 2025 strengthens India's export ecosystem through focused schemes designed to lower costs and boost competitiveness. The FTP initiatives have helped increase India's merchandise exports and encouraged exports beyond traditional sectors, including services, e-commerce, and high-value goods.
Moreover, India is emphasizing sustainability and aligning with global compliance standards. As global consumers increasingly demand eco-friendly products, India is well-positioned to meet this demand with exports such as organic textiles, natural wellness products, and handicrafts made from biodegradable materials.
In conclusion, India is proactively addressing trade restrictions by diversifying its markets, investing in infrastructure, and implementing structural reforms. Finance Minister Nirmala Sitharaman's emphasis on BRICS as a vital platform for inclusive multilateralism underscores India's commitment to global cooperation and its determination to play a leading role in shaping a more equitable and sustainable global trade landscape.
