Last updated:January 12, 2025, 15:57 IST
Experts said India’s importers and exporters should work with the government to address these challenges.
AI is rapidly emerging as a key vehicle for future trade. (Representative image)
Geopolitical tensions, the possibility of another U.S.-led trade war under President-elect Donald Trump, rising barriers to sustainability and China’s overcapacity in key sectors, experts say , rapid advances in AI, etc. will have a major impact on global trade in 2025.
They said India’s importers and exporters should work with the government to address these challenges.
They said India needs to prioritize AI (artificial intelligence) strategies that promise to transform trade logistics and supply chain management and reshape traditional trade patterns.
“AI is rapidly emerging as a key vehicle for future trade. AI-driven digital transformation will not only facilitate trade in services, but also enable entirely new categories of AI, from self-driving cars to robotics and more. It also has the potential to create tradable products using the technology,” said Deepu Kapuria, a trade expert and chairman of Hitech Gears. .
He said that while geopolitical tensions are beyond the private sector’s influence, businesses in developing countries are responding to the growing need to meet sustainability parameters, both environmentally and socially. He said there is a need to invest resources.
“New legislation such as the EU Corporate Sustainability Due Diligence Directive makes it a legal requirement for supply chains to be sustainable, so companies must integrate into GVCs (global value chains). Adhering to sustainability indicators is also important,” Kapuria said.
SK Saraf, a Mumbai-based exporter and founder-chairman of Technocraft Industries, said the domestic industry needs to invest heavily in new-age technologies to become more competitive and take advantage of opportunities. He said there is.
“Exporters will need to look for ways to increase their exports to the United States, as the imposition of high tariffs on Chinese products by the United States presents great opportunities for exporters,” Saraf said.
President-elect Trump has promised to impose even higher tariffs on countries such as China.
Capria said the U.S. approach is sure to invite retaliatory action and could cause significant disruption to global supply chains, trade and FDI flows.
“After years of shock, first the Covid-19 pandemic, then the war between Russia and Ukraine, and then the crisis in the Middle East, countries across the continent are reevaluating their international trade relationships. They are seeking to engage with new partners in line with economic and national security concerns.”
Capria also said that geopolitical changes and an increased emphasis on sustainability are forcing countries to align their long-term trade goals with global trends and take policy measures to ensure coherence between trade and environmental goals. He said it was necessary to take steps.
Economic powers like the EU rely on trade agreements to advance sustainability agendas in partner countries.
Ashwani Kumar, president of the Federation of Indian Export Organizations (FIEO), said there is a need for an accredited body to measure carbon emissions from domestic manufacturing practices.
“We have requested certain foreign agencies to cooperate in this direction as the EU measures will impose serious challenges on Indian exporters,” Kumar added.
(This story has not been edited by News18 staff and is published from Syndicated News Agency Feed – PTI)
