India needs to overcome structural challenges including high trade costs, regulatory complexity, infrastructure gaps and barriers to deeper global integration to achieve its vision of becoming a developed nation by 2047, according to the latest Trade Policy Review (TPR) report released by the World Trade Organization (WTO).
The WTO Secretariat's report recognised India's strong economic performance during the review period, noting that the country remained the fastest-growing economy among the G20 nations. It projected India's real Gross Domestic Product (GDP) growth to remain between 6.8 per cent and 7.2 per cent in FY2027-28, indicating continued economic momentum.
The report stated that sustaining this growth over the long term would require policy reforms aimed at improving competitiveness, reducing trade-related costs and strengthening India's integration with global markets. According to the WTO, these reforms will be important for achieving the government's Viksit Bharat 2047 vision.
The review acknowledged that India made significant progress in expanding financial inclusion during the review period. It also noted developments in trade and investment policies, including the expansion of regional trade agreements, continued liberalisation of foreign direct investment (FDI) rules, digitalisation of trade processes and customs modernisation measures that have improved trade facilitation.
At the same time, the WTO observed that India's policy framework continues to include relatively high import tariffs, import and export controls, state trading practices and extensive budgetary support programmes, particularly for food grain distribution and fertiliser subsidies. The report suggested that while these measures support domestic priorities, they also influence the country's trade environment.
The report further stated that reforms building on administrative and procedural initiatives, including the Jan Vishwas (Amendment of Provisions) Acts, could help improve the ease of doing business. It noted that measures aimed at enhancing productivity, improving the business environment and reducing reliance on trade-restrictive policies could lead to more efficient allocation of resources, strengthen competitiveness and attract higher foreign investment.
The WTO also said that as India seeks to diversify exports and expand its role in global trade, maintaining the right balance between self-reliance and openness will remain important. It added that India's continued participation in the multilateral trading system and support for WTO reforms would play a key role in shaping its future economic growth and resilience.
The report highlighted that India's export strategy over the past decade has focused on leveraging Free Trade Agreements (FTAs) to improve market access, strengthen economic partnerships and integrate Indian businesses with regional and global value chains.
According to the review, India currently has 19 active FTAs and has significantly accelerated trade negotiations since 2021 by signing or concluding negotiations on eight major trade agreements. The WTO said this reflected a strategic shift towards securing long-term market access, reducing tariff and non-tariff barriers and creating stronger links between Indian exporters and global supply chains.
The report also pointed out that India's trade performance has faced several external challenges in recent years. It said that geopolitical tensions, disruptions to global supply chains following the pandemic, climate-related events and export restrictions imposed by some countries have affected the availability and cost of critical inputs required by Indian industries.
In addition, the WTO noted that Indian exporters are increasingly facing non-tariff barriers in overseas markets. These include complex technical standards, conformity assessment procedures and regulatory requirements imposed by certain trading partners, which have limited market access for Indian businesses.
The review also highlighted India's export performance during the assessment period. It noted that merchandise and services exports reached a record USD 863.1 billion in FY2025-26, representing 6.3 per cent growth compared with USD 676.5 billion in FY2021-22, reflecting continued expansion in the country's external trade despite global uncertainties.
The Trade Policy Review is one of the WTO's key transparency mechanisms, under which member countries' trade policies are periodically examined by the Trade Policy Review Body. The review is based on both the member country's policy statement and an independent assessment prepared by the WTO Secretariat. India's reviews are conducted once every five years, and the latest review covers the period from January 2021 to December 2025.
Source PTI