Trade deals that undermine multilateralism may hit growth and exports, govt economists warn
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- ✓Government economists warned that trade deals replacing the multilateral system could hit growth and exports.
- ✓The Monthly Economic Review for September 2026 said such deals cause higher trade costs and uncertainty.
- ✓It noted that India still wants the WTO at the core, as regional agreements should only complement global rules.
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- MARKET
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- The Hindu
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- 3 Minute(s)
- Market Focus
- India Economy
However, the report by the Department of Economic Affairs noted that while India was pursuing a diversified trade strategy, it was doing so within the multilateral trading system and still sought to have the WTO at the core
Economists in the Ministry of Finance have warned that bilateral and regional trade deals that seek to replace the current multilateral trade system could lead to "greater trade diversion, higher trade costs, and greater uncertainty".
However, they also noted that while India was pursuing a diversified trade strategy, it was doing so within the multilateral trading system and still sought to have the World Trade Organization (WTO) at the core of such a system.
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