ENA Sectors 2025-05-30 15:04:55 <p><span style="font-size:14px"><strong>New Delhi, May 30 (KNN)</strong> India's export sector faces growing headwinds due to escalating geopolitical tensions and rising protectionist trade policies, with the Reserve Bank of India warning of potential risks from a global tariff war in its 2024 25 annual report.</span></p> <p><span style="font-size:14px">Despite these challenges, the central bank identified opportunities through India's participation in 14 free trade agreements and six preferential trade agreements that could help mitigate adverse impacts.</span></p> <p><span style="font-size:14px">The RBI projects global merchandise trade volume to contract by 0.2 percent in 2025 under current tariff conditions as of April 14, 2025. </span></p> <p><span style="font-size:14px">However, recent developments including the US-UK trade deal and renewed US-China engagement discussions have provided some optimism for global trade prospects.</span></p> <p><span style="font-size:14px">India is advancing negotiations with several key trading partners, with discussions for agreements with the United States and European Union reportedly in final stages and expected to conclude next month. </span></p> <p><span style="font-size:14px">The country recently finalised its trade agreement with the United Kingdom, completing three years of negotiations that began in 2022. </span></p> <p><span style="font-size:14px">Additional negotiations are underway with Oman and Peru, positioning India to expand its trade network significantly.</span></p> <p><span style="font-size:14px">The country's trade relationships showed mixed results, with deficits widening against China, Russia, and the United Arab Emirates, while surpluses improved with the United States, Netherlands, and United Kingdom.</span></p> <p><span style="font-size:14px">Bilateral trade with the United States reached USD 131.84 billion in fiscal year 2025, representing growth from USD 119.72 billion in the previous year. </span></p> <p><span style="font-size:14px">Indian exports to the US increased 11.6 percent to USD 86.51 billion, while imports grew at a slower pace of 7.42 percent to USD 45.33 billion. </span></p> <p><span style="font-size:14px">This performance resulted in India's trade surplus with the US expanding by 16.6 percent to USD 41.18 billion.</span></p> <p><span style="font-size:14px">The RBI report highlights concerns about rising input costs for manufacturing and subdued domestic demand as potential risks to economic growth. </span></p> <p><span style="font-size:14px">Recent legal developments in the United States, including a federal court ruling that questioned the justification for country-specific tariffs on Indian goods under emergency economic powers legislation, may influence ongoing trade negotiations.</span></p> <p><span style="font-size:14px">The evolving global trade environment requires India to balance participation in preferential trading arrangements with broader competitiveness improvements to capture opportunities in the international marketplace.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 42263 https://knnindia.co.in/news/newsdetails/sectors/india-navigates-trade-turbulence-with-new-ftas-amid-global-headwinds-rbi 2025-05-30 15:04:55 knnindia.co.in