global trade
The new year has started. However, good news is not coming from all over the world. The period of decline in stock markets around the world continues. At the same time, there are signs of economic slowdown from many countries. Meanwhile, this news also creates concern. Economic experts say geo-political tensions, possibility of a renewed trade war in the US under President-elect Donald Trump, increase in stability-based bottlenecks, China’s overcapacity in key sectors and artificial Factors like intelligence (AI) will have a deep impact on global trade in 2025. Experts have said this. Indian exporters and importers should work together with the government to address these challenges.
AI interference in business increased rapidly
Experts say India needs to prioritize its AI strategy as it has the potential to transform business logistics and supply chain management and reshape traditional ways of doing business. Deep Kapuria, business expert and chairman of Hi-Tech Gears, said AI is fast emerging as an important tool for the future of business. AI-based digital transformation will not only boost services trade, but it could also create whole new categories of tradable AI-based goods, from vehicles to robotics and beyond.
While it is beyond the private sector’s ability to ‘influence’ geopolitical pressures, businesses in developing countries need to meet both environmental and social sustainability standards and resources to meet growing needs, he said. Is needed. Kapuria said it is also important for companies to comply with sustainability indicators to integrate into GVCs (global value chains), as they are required to supply legally under the European Union (EU) Corporate Sustainability Due Diligence Directive. It becomes necessary to make the chain durable.
Will have to invest in new technology
SK Saraf, Founder Chairman, Technocraft Industries, said the domestic industry will have to invest heavily in new age technology to become competitive and take advantage of the opportunities. He said exporters will have to find ways to increase exports to the US, as the imposition of higher duties on Chinese goods by the US will open up huge opportunities for them. US President-elect Trump has warned of imposing high tariffs on countries like China. Kapuria said the US approach invites retaliation, which together could cause significant disruption in global supply chains and trade and FDI (foreign direct investment) flows. He said that after several years of shocks, first caused by the COVID-19 pandemic, then by the Russia-Ukraine war and the crisis in West Asia, countries across the continent are reevaluating their international trade relationships. They are exploring engagement with new partners in line with their economic and national security concerns. Federation of Indian Export Organizations (FIEO) president Ashwini Kumar said there is a need for an agency that can measure carbon emissions in domestic manufacturing.
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