Skip to main content

Is India turning less protectionist?

India has long had a relatively protectionist trade policy but, driven in part by the reciprocal tariff threat from the US, there appears to be a slight shift in approach from policymakers. Import duties on certain goods are being lowered as concessions to the Trump administration. More broadly, the government appears to have redoubled efforts to strike free trade deals with the UK and the EU (among others), most likely in an effort to strengthen its export base beyond the US. Politically-sensitive sectors such as agriculture will probably remain behind high trade barriers. But less protection for domestic producers in other sectors would be good for economic growth in the long run by fostering more competition and forcing local firms to seek productivity gains.   

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.