The character of global trade is rapidly changing, and tariffs and various policy measures are being used virtually as 'weapons', Union Finance Minister Nirmala Sitharaman said on Wednesday at the India Economic Conclave 2025, organised by a pan-Indian media house. She commented that India will have to proceed with extreme caution in this situation. On this day, Nirmala said, 'International trade today is no longer what it used to be, and in this changed situation, India will have to adopt more nuanced and stronger strategies.'
Also Read | India’s textile and apparel exports jump 9.4% in November despite tariff headwinds
The finance minister said, "Not just tariffs, but India's overall economic strength will become the country's biggest diplomatic and commercial tool in the coming days. Today, trade is being used as a weapon through tariffs and various other measures. In this situation, India will have to negotiate very carefully." Nirmala believes that the stronger India's economic foundation becomes, the stronger the country's position at the negotiating table will be. She said that in the current international context, international trade is no longer confined within the free and fair framework as before.
Nirmala alleged, 'India is often branded as 'inward-looking' or overly protectionist and labelled as the 'Tariff King'. But in reality, India's intention was never to use tariffs as weapons.' India has mainly adopted necessary tariff measures to protect its domestic industry. When excessive entry of foreign goods into the country's market created concerns of harming the domestic industry, this tariff system worked as a shield, she said.
The finance minister said that currently, the use of trade policy as a 'weapon' is being accepted almost without question. Some countries openly say that tariffs are not good and no country should walk this path, yet suddenly those very countries are erecting new tariff walls. There is hardly any criticism about it either. According to Sitharaman, this hypocrisy has virtually become the new normal.
Also Read | HDB Financial shares slip below listing price: Here’s what Jefferies advises
Nirmala made these comments at a time when global trade is going through severe instability due to high tariffs and geopolitical tensions. High-rate tariffs recently imposed by America have had a major impact on international markets. At the same time, Mexico has also announced that it can impose strict tariffs on all countries with which it does not have free trade agreements.
In this context, how important it is for emerging economies like India to maintain balance and protect their own interests has become clear from the Finance Minister's statement.
