Trade No Longer Free Or Fair, Global System Turning Restrictive: Sitharaman

New Delhi, Dec 18 (KNN) Finance Minister Nirmala Sitharaman said that global trade is increasingly being ‘weaponised’ through tariffs and other restrictive measures, making careful and strategic negotiations essential for India in the evolving international trade environment.

Addressing the India Economic Conclave 2025, organised by the Times Network, the Finance Minister observed that global trade can no longer be described as free or fair. 

She noted that while India is often criticised for being inward-looking or for maintaining tariffs, the country has used such measures only to safeguard domestic industries and not as a tool of coercion.

Trade No Longer Free or Fair

Sitharaman said it has become evident globally that trade practices have shifted significantly, adding that the overall strength of the Indian economy would provide the country with an important advantage during such negotiations.

She pointed out that India’s tariff policies have primarily been aimed at protecting domestic industries fr0m unfair competition and market flooding, rather than being used as an aggressive trade instrument.

India’s Approach to Tariffs

Responding to criticism that labels India as a ‘tariff-heavy’ economy, the Finance Minister said India’s intention has never been to weaponise tariffs. Instead, tariffs have been applied selectively to shield local industries fr0m predatory trade practices.

She also highlighted the apparent inconsistency in global discourse, noting that while tariffs are often discouraged in principle, several countries are now openly adopting protectionist measures without facing similar scrutiny.

Sitharaman emphasised that India must navigate this evolving landscape with caution, leveraging its economic resilience to protect national interests while engaging constructively with global partners.

(KNN Bureau)