← All questionsGS3 · 2025 · Agriculture ·Rising Protectionism and the Indian Economy
QUESTION 2
GS3
10 marks

What are the challenges before the Indian economy when the world is moving away from free trade and multilateralism to protectionism and bilateralism? How can these challenges be met?

WRITE IN
7 min
150 words

What the examiner wants

Discuss the challenges for India as the world shifts from free trade and multilateralism to protectionism and bilateral deals, and how to meet them.

DiscussExplain the different sides of the issue, use evidence, and finish with a balanced view.

Demand-wise check

  1. 1Challenges: higher tariffs (US 2025), export slowdown, supply chain disruptions, WTO paralysis, carbon border taxes (EU CBAM), pressure in FTAs on agriculture and IP≈35 words
  2. 2Opportunities: China+1, bilateral FTAs (UAE, Australia, EFTA, UK)≈35 words
  3. 3Responses: export diversification, competitiveness (logistics, PLI), FTAs, rupee trade, domestic demand, WTO reform≈35 words

Open in about 20 words and close in about 20.

Answer plan

Shift in global tradeChallengesOpportunitiesStrategyConclusion

Where marks usually go

  • No recent examples (CBAM, US tariffs)
  • Only challenges, no way forward

Draw this

  • Table: challenge → response

Value addition

  • AgreementIndia–UK Comprehensive Economic and Trade Agreement was signed in July 2025.Ministry of Commerce and Industry
  • AgreementIndia–EFTA TEPA (2024) includes a commitment of USD 100 billion investment over 15 years.Ministry of Commerce and Industry

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