India must address structural challenges to achieve Viksit Bharat vision by 2047: WTO report

New Delhi: India needs to address structural challenges such as high trade costs, regulatory complexity, infrastructure gaps and barriers to deeper global integration to achieve its goal of becoming a developed nation by 2047, according to a WTO report.

According to the trade policy review report on India by the WTO Secretariat, significant progress was achieved in financial inclusion.

But at the same time, the policy framework included relatively high tariffs, the use of import and export controls, state trading, and extensive budgetary support programmes (most notably for the supply of food grains and fertiliser), it said.

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India's trade and investment policy developments included the expansion of regional trade agreements, ongoing liberalisation of FDI regimes, and efforts to improve trade facilitation through digitalisation and customs modernisation, it noted.

"Looking ahead, in the short term, real GDP growth is forecast to range between 6.8 and 7.2 percent in FY2027/2028, continuing the trend of strong growth posted during the review period - one in which India was the fastest-growing G20 economy.

"Looking further ahead, sustaining the strong economic performance needed to reach the Viksit Bharat vision of a developed India by 2047 will require addressing structural challenges, including high trade costs, regulatory complexity, infrastructure gaps, and barriers to deeper global integration," the report said.

Building on the administrative and procedural reforms, including the Jan Vishwas (Amendment of Provisions) Acts, to promote ease of doing business, reforms to improve the business environment, enhance productivity, and reduce reliance on trade-restrictive measures could support more efficient resource allocation and competitiveness, it pointed out.

Such measures, it said, could also help attract foreign investment.

As India seeks to expand its role in global trade, diversify exports and meet its long-term development objectives, the balance between self-reliance and openness, as well as its engagement in the multilateral trading system and its reform, will remain key determinants of its future growth and resilience, it added.

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Separately, the trade policy review report said that the country's export strategy over the last decade includes leveraging free trade agreements (FTAs) to enhance market access, improve economic partnership and enhance integration with global value chains.

Currently, India has 19 active FTAs and since 2021 has significantly intensified its engagement, having signed or concluded negotiations in eight major agreements.

"This renewed momentum reflects a strategic shift towards securing durable market access, reducing tariff and non-tariff barriers, and linking Indian exporters with regional and global value chains," it said.

In recent years, India's trade performance has been impacted by a range of external challenges, it added.

"Events such as global supply chain disruptions arising from geopolitical tensions, the pandemic, climate-related events, and export controls by some countries have adversely affected the availability and cost of critical inputs," it said.

India is also facing an increased use of non-tariff measures by some trading partners, including complex standards, conformity assessment procedures and regulatory requirements, it said, adding that these have resulted in constrained market access for Indian industry in foreign markets.

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