'Markets are being weaponised': Commerce ministry special secretary hits out at global trade order

"It is a challenging situation, but it also gives India a huge opportunity. We may have only 15% of manufacturing contributing to the GDP, but it is not small," added the bureaucrat.

Speaking about the growing 'asymmetry' in global trade, Rajesh Agarwal, special secretary in Commerce ministry said the failure of World Trade Organisation (WTO) in establishing a rule-based global trading mechanism is leading to an asymmetry in global trade, thereby creating a condition in which markets are being weaponised by a few nations.

Speaking in a session of the Confederation of Indian Industry (CII) Annual Business Summit, Agarwal said India wanted to follow a rule-based global trading order, which is why the WTO was formed. But, WTO has failed to live to its intended purpose resulting in a market where supply-chains are over concentrated.

"It is a challenging situation, but it also gives India a huge opportunity. We may have only 15% of manufacturing contributing to the GDP, but it is not small," added the bureaucrat.

Speaking about a trade order that was intended to benefit a few nations, the bureaucrat added that a unique trade order has emerged where businesses have been promoted with state support, a lot of subsidies. "Businesses are having to address global uncertainties instead of focusing on demand internally. That is what is going wrong. Markets are being weaponised," reasoned Agarwal.

Speaking about the need to forge FTAs, he mentioned: "In an unpredictable environment the world is looking at long-term partnerships and India is uniquely positioned in that context. Today majority nations want to have FTAs with India. And in looking for FTAs, they are not only looking at India for exports, but also as a major investment destination."