Trade policy weaponization adds uncertainty, PM's aide warns

New Delhi — Trade protectionism is evolving into a geopolitical instrument, with countries leveraging tariffs and export restrictions to advance strategic interests, the Prime Minister's Principal Secretary cautioned on Tuesday. PK Mishra, addressing the 5th Kautilya Economic Conclave, highlighted the shifting paradigm in global trade policy and its destabilizing effects on economies worldwide. The transformation reflects a broader trend where traditional trade mechanisms are being repurposed beyond economic objectives, he noted.

Mishra's remarks underscore growing concerns among policymakers about the weaponization of trade tools in an increasingly fragmented global order. The use of tariffs and export controls for non-economic purposes has created an environment of heightened uncertainty for businesses, investors, and governments attempting to navigate international commerce. This uncertainty complicates long-term planning and investment decisions across sectors, the official suggested.

The conclave, named after the ancient Indian strategist Kautilya, brings together economists, policymakers, and business leaders to deliberate on economic strategy and governance. Mishra's intervention signals India's concern about the unpredictable nature of contemporary trade relations and the need for nations to prepare for a more volatile economic environment. India, as a significant trader and emerging economy, faces particular challenges from such policy volatility in managing its growth trajectory and bilateral trade relationships.