Page 7 - CII ARTHA

OCTOBER 2025

From Protection to

Competition: Strengthening

the Resilience of India’s

Economy

Dr Hagen Kruse he recent uncertainty in global trade This resilience partly reflects India’s
Economist T policy serves as a reminder of the need below-average integration into global trade and
World Bank to strengthen the resilience of India’s financial networks. Exports accounted for 21.0
economy. This will require a two-pronged per cent of GDP in 2024, about half the EMDE
effort: increasing competitiveness and average (Figure 1A). While this has dampened
diversifying India’s economic partners. the impact of external shocks, it also impedes
efforts to become a global manufacturing hub.

A Record of Stability,
a Future in Integration 1A Exports of Goods and Services, 2024
(% of GDP)
Over the past two decades, India has 60
been among the fastest-growing
emerging market and developing
economies (EMDEs) globally, with 40 EMDE
interquartile
growth averaging more than 6.0 per cent range
Dr Franziska Ohnsorge
per year—well above the EMDE average 20
Chief Economist of 3.8 per cent per year. And this growth
South Asia Region has been remarkably steady. Where
World Bank many peers suffered crises and 0
recessions, India avoided banking and IND LKA BGD NPL
sovereign defaults: it experienced only a
single recession, in 2020 when Note: Blue shade denote interquartile ranges for 124
(A) and 29 other EMDEs (B) respectively
four-fifths of the world’s economies IND - India; LKA - Sri Lanka;
plunged into recession. BGD - Bangladesh; NPL - Nepal

07