Calls for Focus on Bilateral Trade Deals Amid Global Protectionism; Private Investment Gaining Momentum Across Sectors
India’s economy remains on a solid growth trajectory despite global headwinds, with the Confederation of Indian Industry (CII) projecting a 6.5% GDP growth for the current fiscal year, according to CII President Sanjiv Puri. Speaking on the current macroeconomic environment, Puri emphasised India’s economic resilience and urged policymakers to intensify efforts to secure bilateral trade pacts in the face of rising global protectionism.
“India is starting from a position of strength with a robust macroeconomic foundation,” Puri said. He pointed to multiple factors supporting this optimism—easing interest rates, moderating inflation, a consumption boost from personal income tax concessions effective April 1, and strong momentum in both public and private investment in the latter half of FY24.
Private sector investments, he added, are picking up across critical sectors such as energy, transportation, metals, chemicals, and hospitality. While geopolitical uncertainties—especially in West Asia and Eastern Europe—could lead to some investor caution in the short term, Puri expressed confidence that India’s domestic growth engines would remain strong.
On the external trade front, Puri acknowledged the global shift towards protectionism, including the high tariffs proposed by major economies such as the US. He warned that “more and more barriers to trade are being introduced right now.” He called for a strategic push to sign bilateral trade agreements, particularly with key partners like the United States and the European Union.
“We should pursue trade agreements that are in our national interest. These deals should be structured to be mutually beneficial and support India’s long-term competitiveness,” Puri said, adding that a three-tier tariff structure could help specific sectors better integrate into global supply chains.
The CII President also stressed the importance of enhancing domestic competitiveness through policy focus on structural areas like agriculture, climate resilience, and technological adaptation. “While trade diplomacy is important, we also need to focus inward—on agriculture, on climate change mitigation, and productivity—if we are to sustain this growth over the long term,” he added.
India’s strong fundamentals, a growing consumer base, and accelerating industrial investment are expected to underpin its economic momentum through FY25, even as global volatility continues to test developing economies worldwide.
