Indian Trade Landscape in 2025: Navigating Challenges with AI and Geopolitical Tensions

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Experts predict that the global trade landscape in 2025 will be significantly shaped by geopolitical tensions, advancements in artificial intelligence (AI), and actions taken by the new US administration under President-elect Donald Trump. Indian exporters and importers are encouraged to collaborate with the government to effectively address these impending challenges.

AI is expected to play a crucial role by transforming trade logistics and supply chain management, potentially leading to the emergence of new tradable AI-powered goods, according to trade specialist Deep Kapuria. To maintain competitiveness, Indian industries must invest in modern technologies and align with sustainability initiatives as international regulations tighten.

With the potential for rising tariffs on imports from China following Trump’s promised trade policies, Indian exporters are urged to seek opportunities to fill these gaps in the US market. However, the ramifications of these geopolitical shifts could provoke retaliatory actions that may disrupt global supply chains and foreign direct investment flows.

Experts emphasize the importance of integrating economic activities with sustainability goals, calling for new policies to reflect this interconnectedness. The Federation of Indian Export Organisations has highlighted the need for a certified agency to measure carbon emissions from local manufacturing to comply with new EU regulations, further emphasizing the importance of adapting to the evolving global trade environment.

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