Delhi | 25°C (windy)

India's Trade Crossroads: Ditching Defensive FTAs for Global Economic Powerhouse Status

  • Nishadil
  • October 07, 2025
  • 0 Comments
  • 2 minutes read
  • 4 Views
India's Trade Crossroads: Ditching Defensive FTAs for Global Economic Powerhouse Status

A prominent voice from the academic world is sounding a clarion call for India to dramatically rethink its approach to global trade. Pravin Krishna, a distinguished professor at Johns Hopkins University, has ignited a vital debate, advocating for India to shed its long-standing defensive posture in free trade agreement (FTA) negotiations and actively explore joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Krishna's compelling argument suggests that India's current trade strategy, often characterized by high import tariffs and a focus on protecting domestic industries, is hindering its potential for deeper global economic integration.

He posits that this defensive stance, while seemingly safeguarding local sectors, inadvertently creates a disadvantage at the negotiating table, making it arduous to secure favorable terms in FTAs.

The professor's prescription is clear: India needs to pivot to an 'offensive' stance. Instead of merely reacting to demands for market access, India should proactively seek to leverage FTAs as powerful instruments for domestic reforms.

This strategic shift would involve identifying areas where India can genuinely compete on the global stage and using trade agreements to push for the necessary internal changes to bolster that competitiveness.

One of the most radical suggestions is for India to seriously consider the CPTPP. Comprising 11 Pacific Rim nations, the CPTPP represents a formidable economic bloc, offering member states unparalleled access to dynamic markets and fostering robust supply chain integration.

For India, joining such an agreement could unlock immense opportunities, providing a critical springboard for its manufacturing and services sectors to scale up and become integral parts of global value chains.

Krishna points out that India's previous reluctance to join large multilateral agreements, exemplified by its withdrawal from the Regional Comprehensive Economic Partnership (RCEP), has left it on the sidelines of major trade blocs.

While the reasons for these decisions were complex, the professor argues that a review of such stances is imperative in the current geopolitical and economic climate. He insists that India must move beyond the 'fear of imports' and embrace the opportunities that come with deeper integration.

The core of Krishna's strategy isn't just about tariff cuts; it's fundamentally about 'behind-the-border' reforms.

He emphasizes that for India to truly thrive in a more open trade environment, it must focus on improving critical domestic factors such as logistics, land availability, labour laws, and bureaucratic efficiency. These internal reforms, rather than just tariff adjustments, are the true keys to enhancing India's competitiveness and enabling its industries to benefit from expanded market access.

By adopting a proactive and reform-oriented approach to FTAs, India stands to gain not only through increased trade but also by fostering a more competitive, efficient, and resilient domestic economy.

It's a call for India to shed its past trade inhibitions, embrace a bolder vision, and strategically position itself as an undeniable force in the global economic landscape.

.

Disclaimer: This article was generated in part using artificial intelligence and may contain errors or omissions. The content is provided for informational purposes only and does not constitute professional advice. We makes no representations or warranties regarding its accuracy, completeness, or reliability. Readers are advised to verify the information independently before relying on