International Trade & Customs: 2024 In-Review and Outlook for 2025

As we step into 2025, the global trade landscape is poised for significant transformation, with India at the heart of many pivotal developments. The year 2024 underscored India’s resilience and strategic importance in international trade, with noteworthy growth in sectors like electronics, pharmaceuticals, and transportation equipment exports. Despite challenges like rising imports of energy and raw materials, India remained a beacon of robust economic growth, with GDP expected to surpass USD 4.27 trillion in FY 2025-26.

The evolving dynamics of global supply chains, driven by geopolitical shifts and sustainability imperatives, present India with an unprecedented opportunity to strengthen its role as a manufacturing and export hub. Initiatives such as expanding production-linked incentive (PLI) schemes, focusing on quality control measures, and active engagement in free trade agreements reflect India’s readiness to adapt and thrive in a complex trade ecosystem. However, this trajectory is not without its challenges. India’s trade policies must balance proactive measures to attract investment while addressing vulnerabilities in trade deficits and non-tariff barriers. The adoption of innovative trade remedies, including anti-absorption measures and sector-specific safeguards, will be critical in mitigating external pressures and protecting domestic industries.

Looking ahead, India’s trade strategy for 2025 should emphasize:

1. Sustainability and Digital Integration: Leveraging digital trade frameworks and aligning with global sustainability standards to unlock new markets.
2. Global Partnerships: Deepening trade relationships through comprehensive free trade agreements, particularly with regions like the UK and the EU, exploring new opportunities with the Eurasian Economic Union and in Latin America and finally a mini-deal with the new US administration.
3. Policy and Regulatory Modernization: Enhancing transparency, streamlining compliance procedures, and fostering an investment-friendly regulatory environment.

“In the midst of chaos, there is also opportunity.”
– Sun Tzu

This timeless wisdom encapsulates the spirit of resilience and strategic foresight that will guide India as it navigates the uncertainties of global trade and emerges stronger in 2025.  With focused efforts on building competitive advantages and leveraging its demographic dividend, India is set to make a profound impact on the world stage of trade and commerce.

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