What happened?
On 27 February 2025, Finance Minister Nirmala Sitharaman, speaking at Business Standard’s ‘Manthan’ summit, highlighted the global shift towards bilateralism in trade and investment. She stated that multilateral institutions like the World Trade Organization (WTO) are becoming less effective, requiring India to pursue stronger bilateral agreements. India has initiated trade negotiations with key partners, including the UK, US, and European Union.
Why it matters to India:
As multilateral trade frameworks weaken, securing favourable bilateral agreements will be essential for India’s global economic standing. Strengthened trade ties with major economies can improve market access, attract investment, and enhance India’s competitiveness. Proactively shaping new trade partnerships ensures India remains resilient amid changing global trade dynamics.