India urged to dismantle trade barriers to boost economic growth

India faces mounting pressure to streamline its trade policy framework and eliminate regulatory obstacles that are constraining business activity across sectors. Business groups and international observers argue that entrenched tariffs, complex import procedures, and local content requirements are raising costs for domestic enterprises and deterring foreign investment.

The barriers extend across multiple industries, from manufacturing to services, creating inefficiencies that ripple through supply chains. Small and medium-sized enterprises report particular difficulty navigating licensing requirements and customs processes, which they say consume time and resources that could be directed toward expansion and innovation.

Trade liberalisation advocates contend that opening markets would enhance India's competitiveness in global commerce while attracting investment in high-value sectors. Regional competitors have made similar structural reforms in recent years, positioning themselves as preferred destinations for manufacturing and business operations.

Government officials have indicated openness to selective reforms, though concerns persist about protecting domestic industries during their development phase. The challenge for policymakers lies in balancing the need for gradual market opening with safeguards for vulnerable sectors and workers dependent on protected industries.