New Delhi: In a rapidly changing global trade landscape, India is positioning itself to capitalize on bilateral relations to drive economic growth. Speaking at the BS Manthan event in New Delhi on February 27, Finance Minister Nirmala Sitharaman emphasized the importance of strengthening bilateral ties for trade and investment. This strategic move comes as multilateral institutions face challenges in effectively addressing global issues.
Sitharaman noted that bilateralism has become a key tool in international relations, especially as the world witnesses a significant shift away from multilateral frameworks. “Bilateralism is now taking the top of the agenda,” she stated, highlighting the need for India to ramp up its bilateral relations not just for trade and investment but also for strategic partnerships.
The Finance Minister observed that the weakening of multilateral institutions means countries must rely more heavily on bilateral agreements to secure favorable trade terms. “Every country wants to be treated special,” she said, underscoring the importance of direct negotiations in the absence of a robust Most Favoured Nation (MFN) concept.
India is actively pursuing bilateral trade agreements with several countries, including the UK and the US. Additionally, discussions are ongoing with the European Union for a free trade pact. Sitharaman believes India’s unique blend of technology and talent can make it a driving force in global growth, especially in a world where traditional trade anchors like the World Trade Organization are losing influence.
Background and Context
The push for bilateral relations aligns with India’s broader economic strategy, which includes reforms aimed at enhancing its position as a business destination. Sitharaman emphasized the need for continuous reforms across various sectors, including debt management and fiscal prudence, to support India’s growth ambitions.
