In the face of rising global trade tensions, tariff shocks and persistent supply chain disruptions, India is stepping up with a series of bold reforms designed to safeguard its growth momentum.
According to the Finance Ministry&rsquo;s latest Monthly Economic Review, the resilience of India&rsquo;s external sector has been a cornerstone of the country&rsquo;s stable macroeconomic environment even as the global trade order is shaken by uncertainty.
&ldquo;Given the importance of the US market for India&rsquo;s goods exports and the tariff rates that would apply to a significant portion of India&rsquo;s merchandise exports to the United States, India would face these effects, unless the uncertainty is resolved soon, resulting in lower duties,&rdquo; the review warned.
The document highlights the risks posed by slowing global merchandise trade. The World Trade Organization projects growth at just 0.9 per cent in 2025, far below its earlier estimate of 2.7 per cent, with the impact of fresh tariffs expected to weigh on trade flows well into 2026.
To offset these challenges, Prime Minister Narendra Modi has unveiled a policy roadmap aimed at easing compliance burdens, reducing costs for households and businesses, and creating a more competitive environment for investment.
Among the key measures is a Task Force for Next-Generation Reforms, which will focus on simplifying regulations and empowering start-ups, MSMEs and entrepreneurs. A next-generation GST reform plan is also in the pipeline, with relief for essential items expected to boost consumption demand.
The review notes that these reforms, coupled with a potential ratings upgrade, could help lower borrowing costs, attract foreign capital inflows, widen access to global markets and ultimately provide relief to consumers and businesses alike.
&ldquo;Complementing these measures, the rating upgrade is anticipated to reduce the borrowing costs, attract greater foreign capital inflows, widen the access to global capital markets, boost disposable income, reduce inflationary pressures, cut input costs for businesses, and support growth,&rdquo; the ministry underlined.
States, too, are pitching in by deregulating labour restrictions, such as allowing women to work night shifts, while improving ease of doing business indicators. Employment generation remains at the centre of the strategy, with programmes like the PM Viksit Bharat Rozgar Yojana, combined with reforms in education and skill development, aimed at building a workforce fit for the challenges of a rapidly changing global economy.
The message is clear: while global uncertainties are expected to persist, India is positioning itself not merely to absorb the shocks but to turn them into an opportunity for sustained, inclusive growth.

India Bets on Bold Reforms Amid Trade Turmoil

Finance Ministry outlines reforms to shield India from global tariff shocks

India Bets on Bold Reforms Amid Trade Turmoil

Finance Ministry outlines reforms to shield India from global tariff shocks

August 28, 2025 | 16:49 IST