The recent call by World Bank Group President Ajay Banga for India to “think less” about tariffs and focus more on trade opportunities strikes at the heart of a critical economic debate — one that has practical implications far beyond headline economics. Banga’s remarks, made during his visit to Bhubaneswar, highlighted India’s growing network of over 100 trade agreements and pointed to the landmark India-EU free trade agreement as an example of how lowering trade barriers can expand market access and link Indian businesses with nearly two billion consumers abroad.
This shift in emphasis ought to serve as a strategic cue for policymakers. Excessive focus on protective tariffs can offer temporary shelter to domestic producers, but it often isolates them from global value chains, reduces competitive pressure, and limits exposure to innovation. In contrast, prioritising opportunities — from deeper regional cooperation to sector-specific export pushes — can help India embed itself more fully in global markets, boost exports, create jobs, and spur technology transfer. With emerging markets now constituting a larger share of global trade, such outward-looking engagement is both timely and necessary.
India’s evolving trade strategy should not abandon tariff policy entirely, but it must integrate protection with proactive measures that unlock new pathways for growth. The global economic landscape is shaped less by barriers and more by networks of cooperation and competitiveness. Embracing this reality can help India not only diversify its export destinations but also attract investment, enhance productivity, and build resilience against geopolitical disruptions. What matters most now is unlocking opportunities that deliver value back home.