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India’s Semiconductor Renaissance: Becoming the Global BPO for OSA In the rapidly evolving landscape of global technology, semiconductors stand as the unsung heroes powering everything from smartphones to electric vehicles and artificial intelligence systems. As the world grapples with supply chain disruptions, geopolitical tensions, and an insatiable demand for advanced electronics, a intriguing question emerges: Can India position itself as the world’s Business Process Outsourcing (BPO) equivalent for semiconductors? This analogy draws from India’s storied success in the IT services sector, where it became the go-to destination for cost-effective, skilled backend operations. Similarly, in semiconductors, the “BPO” role would focus on the outsourced assembly, testing, and packaging (OSAT) segment a critical but less capital-intensive part of the chip-making value chain. Rather than competing head-on with giants like Taiwan in high-end fabrication, India could leverage its vast talent pool, improving infrastructure, and government incentives to become a reliable global hub for these essential backend services. This shift could not only generate millions of jobs but also integrate India deeper into the international semiconductor ecosystem, fostering economic resilience and technological independence. The semiconductor industry is a complex web of interconnected processes, often likened to a symphony where each stage must harmonize perfectly. At its core, chip production begins with design, where engineers craft intricate blueprints using sophisticated software. This is followed by fabrication, or “fab,” where ultra-pure silicon wafers are etched with billions of transistors in billion-dollar cleanrooms. Finally, comes OSAT the backend phase where wafers are diced into individual chips, assembled into packages, rigorously tested for defects, and prepared for integration into end products. While fabrication grabs headlines for its technological prowess and massive investments, OSAT is the workhorse that ensures chips are reliable and ready for market. Globally, the OSAT market is booming, projected to grow from around $45 billion in 2024 to over $85 billion by 2033, driven by the explosion in demand for AI, 5G, and electric vehicles. Companies like Taiwan’s ASE Group and Amkor Technology dominate this space, but supply bottlenecks during the COVID-19 pandemic exposed vulnerabilities, prompting a search for diversified locations. Enter India, with its proven track record in outsourcing complex tasks, a young demographic dividend, and a strategic push to climb the value chain. India’s journey in semiconductors has been marked by ambition tempered with pragmatism. Historically, the country excelled in chip design, hosting design centers for global majors like Intel, Qualcomm, and AMD in cities such as Bengaluru and Hyderabad. Over 20% of the world’s chip designers are Indian, contributing to innovations in processors and embedded systems. However, manufacturing lagged due to high capital requirements, water and power demands, and a lack of ecosystem maturity. Recognizing this, the Indian government launched the India Semiconductor Mission (ISM) in 2021 with a $10 billion outlay, emphasizing not just fabs but also OSAT and assembly, testing, marking, and packaging (ATMP) units. This policy framework offers up to 50% fiscal support for eligible projects, alongside state-level incentives that can cover an additional 20-25% of costs. By mid-2025, these efforts have borne fruit, with cumulative investments surpassing $18 billion across 10 sanctioned projects. For instance, in August 2025 alone, four new units were approved in Odisha, Punjab, and Andhra Pradesh, focusing on silicon carbide (SiC) fabrication, advanced packaging, and high-power discrete devices. These developments signal a deliberate strategy to start with OSAT, where entry barriers are lower, and gradually build toward full-scale manufacturing. One of the key advantages India brings to the OSAT table is its abundant, cost-effective labor force skilled in electronics and software. With over 800,000 engineering graduates annually, many specializing in VLSI (Very Large Scale Integration) design and testing, India has a ready talent pool that can be upskilled for semiconductor backend operations. Cities like Bengaluru, already home to R&D hubs for companies such as Texas Instruments and NXP Semiconductors, provide a foundation for expanding into assembly and testing. Moreover, India’s improving logistics networks and proximity to growing markets in Southeast Asia and the Middle East reduce shipping times and costs compared to traditional hubs. Global trends further bolster this case: As chipmakers diversify away from China amid U.S.-China trade tensions, India’s neutral geopolitical stance and “China+1” appeal make it an attractive alternative. Reports from industry analysts indicate that OSAT capacity bottlenecks have persisted post-pandemic, with demand for advanced packaging like fan-out wafer-level packaging and heterogeneous integration l outstripping supply. India’s entry could alleviate these pressures, much like how it scaled BPO services in the 2000s to handle global back-office needs. Recent approvals under the ISM highlight India’s accelerating momentum. In Odisha, SiCSem Private Limited, partnering with UK’s Clas-SiC Wafer Fab, is establishing India’s first commercial SiC compound semiconductor fab, capable of producing 60,000 wafers annually and packaging 96 million units. This facility targets high-efficiency applications in electric vehicles and renewable energy, aligning with global sustainability goals. Adjacent to it, 3D Glass Solutions is setting up an advanced packaging unit using glass interposers and 3D integration modules, a technology poised for growth in data centers and AI hardware. In Punjab, Continental Device India Limited (CDIL) is expanding its Mohali plant to produce MOSFETs, IGBTs, and Schottky diodes using both silicon and SiC, catering to automotive and industrial sectors. Meanwhile, Andhra Pradesh’s ASIP Technologies, in collaboration with South Korea’s APACT, will build a testing and packaging facility with a 96 million-unit annual capacity. These projects, with a combined investment of about $524 million, are expected to create over 2,000 direct jobs and thousands more indirectly, stimulating local ecosystems for chemicals, gases, and equipment suppliers. Beyond these, earlier milestones underscore the strategy’s viability. Micron Technology’s $2.56 billion ATMP facility in Gujarat, approved in June 2023, is ramping up phased production, while Tata Electronics’ partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC) in Dholera promises 50,000 wafers per month. Tata’s OSAT unit in Assam, with a $3.07 billion investment, aims for 48 million chips daily, focusing on flip-chip packaging. CG Power’s collaboration with Renesas and Stars Microelectronics in Sanand targets 15 million chips per day, and Kaynes Semicon’s Gujarat plant adds another 6.33 million. The HCL-Foxconn joint venture in Uttar Pradesh, approved in May 2025, will process 20,000 wafers monthly. Collectively, these initiatives span diverse technologies from legacy nodes (28-90nm) for consumer electronics to advanced compounds like SiC for EVs positioning India to capture a slice of the $50-60 billion OSAT market by 2030. Yet, India’s path to becoming the semiconductor BPO is fraught with challenges that demand nuanced solutions. Infrastructure remains a bottleneck: Semiconductor operations require uninterrupted power, ultra-pure water (millions of liters daily), and stable temperatures, which India’s grid and water systems sometimes struggle to provide consistently. Periodic shortages in states like Tamil Nadu and Karnataka highlight the need for dedicated industrial clusters with resilient utilities. Talent gaps also loom large; while India produces engineers in droves, specialized skills in cleanroom operations, yield optimization, and advanced testing are scarce. The global talent shortage estimated at over a million workers intensifies competition, with established players like Taiwan offering lucrative packages. To counter this, initiatives like the ISM’s support for 278 academic institutions and 72 startups are crucial, funding prototypes and offering up to 50% cost coverage for design projects capped at $18 million each. Intellectual property (IP) protection and policy stability are additional hurdles. Foreign investors seek assurances against IP theft, a concern amplified by India’s past enforcement issues. A predictable regulatory environment is vital, as semiconductor projects span decades and involve billions in sunk costs. Competition from Southeast Asia Malaysia and Vietnam already host OSAT facilities for Intel and Samsung adds pressure, with these nations offering lower labor costs and established supplier networks. Moreover, basic OSAT like wire-bonding won’t suffice; India must ascend to high-value segments such as wafer-level packaging and 3D integration to attract marquee clients. Small players, including MSMEs, face capital barriers, with high setup costs deterring entry despite opportunities in niche areas like power modules for EVs. Despite these obstacles, opportunities abound, fueled by global market dynamics and India’s intrinsic strengths. The OSAT sector’s growth is propelled by AI and data centers, with chip sales forecasted to soar in 2025. India’s market alone is projected to expand from $38 billion in 2023 to $45-50 billion by end-2025, reaching $103 billion by 2030 at a 13.76% CAGR. Strategic partnerships, like HorngCom’s tie-up with RRP Electronics for OSAT expansion, exemplify how India can integrate into global chains. The “China+1” shift is accelerating, with OEMs relocating due to rising costs and tensions, benefiting India’s cost-effective labor and business-friendly reforms. By focusing on OSAT first, India can build expertise backward into fabs, creating a vendor ecosystem for substrates, test handlers, and chemicals. Joint programs with global toolmakers like ASML and Applied Materials could upgrade local talent, while incentives lock in long-term contracts from firms like NVIDIA and AMD. Case studies illustrate this potential. Tata Electronics’ Assam OSAT facility, set to launch in 2025, will handle advanced packaging for automotive and consumer chips, drawing on Tata’s manufacturing prowess. Micron’s Gujarat unit, already in phase one, demonstrates how foreign investment can spur local supply chains, with plans for DRAM and NAND testing. Kaynes Technology’s $376 million plant in Gujarat, producing 6.33 million chips daily, highlights mid-cap firms’ role in scaling OSAT. In Odisha, the SiC fab addresses the growing demand for efficient power semiconductors in EVs, where SiC reduces energy loss by up to 30%. These projects not only reduce import dependency India currently imports 95% of its semiconductors but also enhance national security by securing supplies for defense and telecom. Looking ahead, India’s semiconductor ambitions could yield profound economic impacts. Projections suggest the sector could create 6 million jobs by 2030, boosting GDP through exports and value addition. With electronics manufacturing eyeing $300 billion by 2030, OSAT could contribute $20-30 billion annually, positioning India among the top five global players.  Success hinges on execution: Streamlining approvals, investing in R&D, and fostering academia-industry ties. Emerging trends like GaN (Gallium Nitride) for high-frequency applications and display fabs remain gaps, but progress in SiC and CMOS paves the way. If India sustains momentum through stable policies, skill development, and international collaborations it could indeed become the world’s semiconductor BPO, transforming from a design powerhouse to an indispensable backend partner. In conclusion, the question of whether India can become the world’s BPO for semiconductors is not merely aspirational but grounded in strategic foresight. By capitalizing on OSAT’s lower barriers, leveraging its human capital, and navigating challenges with resilience, India stands on the cusp of a semiconductor renaissance. This evolution promises not just economic gains but a redefined global role, where India ensures supply chain stability and drives innovation. As the world watches, India’s backend prowess could very well power the future. Abhisht Chaturvedi is a Research Analyst at Insights International. His research interests include tech policy, media, and communications.

India’s Anti-Piracy Crusade: Launching a Task Force to Protect the Creative Econ The recent establishment of a dedicated task force by the Ministry of Information and Broadcasting to tackle the escalating issue of online piracy marks a significant milestone in safeguarding the nation’s vibrant creative sector. This move has been met with enthusiastic support from key industry players, including the Internet and Mobile Association of India, which views it as a crucial intervention to protect the economic foundations of entertainment and media. As digital platforms continue to dominate content consumption, the threat of unauthorized distribution has grown exponentially, eroding revenues and stifling innovation. This initiative comes at a time when the industry is grappling with substantial financial setbacks, underscoring the need for coordinated action between government bodies and private stakeholders to foster a more secure environment for creators and consumers alike. Piracy in the digital age has evolved into a sophisticated challenge that transcends borders and traditional enforcement methods. In India, where the media and entertainment landscape is one of the largest and most dynamic in the world, unauthorized access to films, shows, and other content has become alarmingly commonplace. Reports indicate that a significant portion of the population engages with pirated material, often driven by factors such as high subscription costs, limited access to legal alternatives, and the convenience of illicit platforms. This not only impacts box office collections and streaming revenues but also affects the livelihoods of countless artists, technicians, and support staff involved in content creation. The government’s response through this task force reflects an understanding that addressing piracy requires a multifaceted approach, combining legal reforms, technological interventions, and public awareness campaigns. One of the pivotal documents highlighting the severity of this issue is a comprehensive study released in late 2024, which delves into the economic ramifications of piracy on filmed entertainment and overthetop platforms. This report estimates that the piracy economy in India amounted to a staggering 224 billion rupees in 2023, positioning it as a major segment within the broader media ecosystem. Such losses translate into missed opportunities for growth, with potential tax revenues also taking a hit, estimated at up to 43 billion rupees in forgone goods and services tax. The analysis reveals that streaming accounts for the majority of pirated content sources, followed by torrents, social media, and mobile applications. Pirates themselves generate substantial income through advertisements on these illegal sites, often exceeding 100,000 rupees per month per operator. Consumer behavior plays a central role in perpetuating this cycle. Surveys within the report show that over half of media consumers in India access pirated content, with a notable preference for highquality versions ripped from legitimate streaming services rather than poorquality theatrical leaks. A significant 70 percent of respondents indicated reluctance to pay for cinema tickets, while 84 percent expressed similar aversion to subscription fees for digital platforms. This resistance stems from the hassle of managing multiple subscriptions and the perceived unavailability of desired content on legal channels. Interestingly, 62 percent of those surveyed would shift to authorized sources if content were offered for free with advertisements, suggesting that pricing strategies and adsupported models could be key to curbing illicit consumption. Demographic insights further illuminate the problem. Threequarters of individuals engaging with pirated material fall within the 19-to-34 age bracket, a group that is techsavvy and often resides in tier two cities where legitimate access might be limited due to infrastructure or affordability issues. Language preferences also vary, with Hindi content leading at 40 percent, followed by English at 31 percent, and South Indian languages at 23 percent. These patterns indicate that piracy is not merely a fringe activity but a widespread practice influenced by socioeconomic factors, highlighting the need for targeted interventions that address accessibility and education. The filmed entertainment segment, which generated 197 billion rupees in 2023, is projected to expand further, yet piracy undermines this potential. Digital video subscription revenues have surged by 160 percent since the onset of the global health crisis, reaching 73 billion rupees, but growth has slowed, with expectations of reaching 103 billion by 2026. Original content produced for overthetop services is particularly vulnerable, comprising 60 percent of pirated viewership, with users spending an average of 9 hours per week on such material. This diversion not only reduces subscriber bases but also discourages investment in new productions, as creators face diminished returns on their efforts. Legal frameworks have been strengthened to combat this menace, with a key amendment act passed in 2023 introducing stringent measures against digital piracy. This legislation prohibits unauthorized recording and transmission of films, imposing penalties that include imprisonment ranging from 3 months to 3 years and fines up to 5 percent of a film’s production cost. It empowers authorities to take swift action against illegal activities, including the blocking of infringing websites and the pursuit of criminal charges. While not a complete solution, these provisions represent a shift toward more proactive enforcement, aiming to deter both individual offenders and organized networks that profit from content theft. The task force itself was formalized following discussions at highlevel industry forums, including a summit focused on audiovisual and entertainment advancements held earlier in 2025. During these deliberations, experts emphasized the global nature of piracy, noting its transformation into a cybercrime that funds broader illicit activities. Recommendations included the creation of a centralized body with international collaboration to coordinate crossborder efforts and invest in advanced monitoring technologies. The task force’s objectives encompass rapid response to content leaks, such as removing pirated films within the first day of detection, and developing action plans that integrate input from various ministries and industry representatives. Industry associations have been vocal in their endorsement of this development. The leading body representing internet and mobile entities has highlighted the task force as a timely measure, aligning with ongoing calls for enhanced protection of intellectual property. Its digital entertainment committee, comprising executives from major platforms, has pledged to contribute expertise to shape effective strategies. The chair of this committee, who leads a prominent digital content division, stressed that participation would channel collective knowledge into measures that not only safeguard the economy but also promote longterm expansion. By uniting stakeholders, the initiative aims to create an environment where originality flourishes and creators feel secure in delivering diverse stories to audiences. A cofounder of a news aggregation service and cochair of the committee echoed these sentiments, describing piracy as one of the most persistent obstacles facing the sector. He viewed the task force as an opportunity for collaborative problem solving with government and ecosystem partners, paving the way for a more reliable and trustworthy industry. Such unified voices underscore the consensus that combating piracy requires partnership, with the potential to enhance India’s standing in global markets by demonstrating a commitment to protecting creative outputs. Broader economic implications extend beyond immediate revenue losses. Projections suggest that unchecked piracy could lead to 2.4 billion dollars in forgone earnings for the online video industry alone by 2029, affecting user growth and innovation. In 2024, losses were already at 1.2 billion dollars, with potential escalation if no interventions occur. This impacts job creation, as the sector supports millions in direct and indirect employment, from production crews to distribution networks. Moreover, piracy erodes consumer trust in legal platforms, perpetuating a cycle where quality content becomes scarcer due to reduced funding. Global comparisons reveal that India is not alone in this struggle, but its scale amplifies the urgency. In regions like Southeast Asia, similar trends show high piracy rates driven by affordability issues, while advanced economies employ site blocking and international treaties to mitigate threats. India’s approach, incorporating dynamic injunctions that extend to mirror sites, has proven effective in legal battles against digital infringers. However, enforcement challenges persist, including the rapid emergence of new piracy domains and the need for faster judicial processes. Recommendations from various studies advocate for a holistic strategy. This includes updating policies to cover secondary infringements like account sharing, blacklisting persistent offenders, and launching awareness campaigns in educational institutions to instill respect for intellectual property from a young age. International alliances could facilitate extradition and joint operations against transnational piracy rings. On the industry side, innovations such as watermarking premium content, bundling subscriptions, and exploring adbased tiers could make legal access more appealing. Looking ahead, the task force holds promise for transforming the landscape. By integrating technology like artificial intelligence for detection and blockchain for rights management, it could set precedents for efficient antipiracy operations. Success will depend on sustained collaboration, adequate resourcing, and adaptability to evolving threats. If effective, this could not only recover lost revenues but also boost investor confidence, enabling the Indian entertainment industry to reach new heights on the world stage. The creative economy, encompassing films, series, music, and more, is a cornerstone of India’s soft power. Protecting it from piracy ensures that cultural narratives continue to thrive, contributing to national identity and global influence. As the task force begins its work, backed by robust laws and industry support, there is optimism that this collective effort will yield tangible results, fostering a sustainable ecosystem for generations of storytellers. In delving deeper into the origins of this initiative, it’s worth noting the preparatory discussions at international forums where experts from various countries shared insights on content protection. These conversations stressed the need for synergies between rights holders and enforcement agencies, highlighting successful models from other nations that could be adapted locally. For instance, coordinated takedowns and publicprivate partnerships have reduced piracy incidences elsewhere, offering blueprints for India. Consumer education emerges as a critical pillar. Many users unknowingly contribute to piracy by sharing links or using unauthorized apps, unaware of the broader implications. Campaigns that emphasize the risks, such as malware exposure and legal consequences, alongside the benefits of supporting creators, could shift behaviors over time. Technological advancements also play a vital role. Tools for realtime monitoring of online platforms can identify leaks swiftly, allowing for immediate interventions. Collaborations with internet service providers to block access to known piracy sites have shown promise, though balancing this with freedom of expression remains a delicate task. The role of OTT platforms cannot be overstated. As they invest billions in original content, their vulnerability to theft necessitates internal measures like enhanced encryption and user verification. Industrywide standards for antipiracy could standardize these efforts, amplifying their impact. Economic modeling from recent analyses projects that effective curbs on piracy could add billions to the gross domestic product through increased production and consumption. This ripple effect extends to related sectors like advertising, tourism, and merchandise, amplifying the overall benefit. Challenges, however, abound. Enforcement in rural areas, where internet penetration is growing but awareness is low, requires tailored approaches. Additionally, the international dimension means dealing with servers hosted abroad, necessitating diplomatic efforts. Despite these hurdles, the momentum is positive. With the task force in place, India is poised to lead in antipiracy efforts among emerging markets, setting an example for others facing similar issues. In Conclusion, this development, the establishment of a dedicated task force by the Ministry of Information and Broadcasting represents a watershed moment in India’s ongoing battle against online piracy, signaling a renewed commitment to safeguarding the nation’s thriving creative sector. By addressing piracy head-on through a multifaceted strategy that integrates legal reforms, technological innovations, and collaborative partnerships between government agencies, industry stakeholders, and international allies, India stands poised to unlock the full potential of its media and entertainment industries. This initiative not only promises to recover billions in lost revenues potentially adding substantial value to the GDP through boosted production, job creation, and ancillary sectors like advertising and tourism but also fosters an environment where creators can innovate without fear of intellectual property theft. As digital consumption continues to surge, curbing unauthorized distribution will enhance consumer trust in legal platforms, encourage investment in high-quality original content, and promote accessible pricing models such as ad-supported streaming to draw users away from illicit sources. Moreover, by tackling the socioeconomic drivers of piracy, including affordability and awareness gaps, particularly among younger demographics in tier-two cities, the task force can cultivate a culture of respect for intellectual property from the ground up. Ultimately, this collective effort will not only ensure prosperity and cultural richness for generations of storytellers, artists, and technicians but also elevate India’s global standing as a leader in protecting creative economies among emerging markets, paving the way for sustainable growth, enhanced soft power, and a more equitable digital ecosystem for years to come. Abhisht Chaturvedi is a Research Analyst at Insights International. His research interests include tech policy, media, and communications.

Prime Minister Narendra Modi India’s Quest for Self-Reliance: Navigating Global Protectionism with Bold Reforms On August 15, 2025, Prime Minister Narendra Modi ascended the ramparts of the Red Fort in New Delhi to deliver his 12th Independence Day address, a record-breaking 103-minute speech that resonated with ambition and urgency. The theme of Atmanirbhar Bharat self-reliant India dominated his message, presented as both a shield against the rising tide of global protectionism and a foundation for India’s journey toward becoming a developed nation by 2047, a vision he terms Viksit Bharat. The speech came at a critical juncture, with the United States, under President Donald Trump, imposing a 50% tariff on Indian exports, citing India’s oil trade with Russia and its resistance to opening agricultural markets. Modi’s address was not a mere reaction to external pressures but a comprehensive roadmap, weaving together economic reforms, strategic autonomy, and cultural pride to position India as a resilient global power. The global economic landscape in 2025 is increasingly fractured, with nations retreating into economic nationalism. The U.S. tariffs, part of a broader protectionist wave, aim to force India to align with American trade priorities, particularly by reducing reliance on Russian oil and allowing greater access for U.S. agricultural products. Modi’s speech avoided direct confrontation, instead framing self-reliance as a universal principle tied to national dignity. He argued that dependence on foreign powers for essentials like energy, technology, or defense undermines true sovereignty, a sentiment that echoes India’s historical struggle against colonial exploitation. By invoking Swadeshi, a term rooted in the independence movement’s call for domestic production, Modi connected past resilience with present challenges, urging citizens to see self-reliance as both an economic strategy and a cultural ethos. Modi’s vision of self-reliance is distinct from the inward-looking policies of India’s past, which often led to economic stagnation. He emphasized building domestic capabilities to compete globally, encapsulated in his call for products with “daam kam, dum zyada” (low price, high quality). This philosophy seeks to create a cycle where consumer preference for Indian goods drives industrial growth, which in turn enhances competitiveness and global market share. The success of India’s toy industry, which reduced import reliance after Modi’s earlier Vocal for Local campaigns, was highlighted as a model. He urged shopkeepers to display Swadeshi boards and influencers to promote local products, aiming to foster a cultural shift where Indian innovation is celebrated, driving demand and economic resilience. A cornerstone of Modi’s address was the announcement of a high-powered task force to spearhead next-generation economic reforms. This body, tasked with delivering time-bound recommendations, aims to modernize India’s regulatory framework, streamline governance, and prepare the nation for a $10 trillion economy by 2047. The task force reflects a recognition that self-reliance requires systemic change, addressing issues like bureaucratic inertia and complex regulations that deter investment. By prioritizing governance reform, Modi seeks to create an ecosystem where businesses, particularly startups and MSMEs, can thrive without being stifled by red tape. This move is particularly strategic in the context of global protectionism, as it signals India’s intent to bolster internal resilience to navigate external economic challenges. The Goods and Services Tax (GST), introduced in 2017, was another focal point. Describing proposed second-generation reforms as a “Diwali gift,” Modi promised a simplified tax structure, reduced rates on essential goods, and relief for MSMEs. The original GST unified India’s fragmented tax system but faced criticism for its multiple slabs and high compliance costs, particularly for smaller businesses. The new reforms, including a streamlined two-slab system and corrections to inverted duty structures, aim to make taxation more equitable and efficient. By aligning these changes with Diwali, a festival of renewal, Modi framed economic policy as a shared national endeavor, appealing to both pragmatism and cultural sentiment. Energy independence was a critical pillar of Modi’s self-reliance agenda. India’s reliance on imported oil, particularly from geopolitically volatile regions, has long been a vulnerability. The U.S. tariffs, tied to India’s oil trade with Russia, underscore this challenge. Modi announced plans to increase nuclear energy capacity tenfold by 2047 through 10 new reactors, launched the National Deep Water Exploration Mission to tap offshore oil and gas, and emphasized expanding solar and hydroelectric power. India’s early achievement of its 2030 clean energy target, with 50% of its energy mix from non-fossil sources, highlights progress. These initiatives aim to reduce import bills, enhance energy security, and position India as a leader in sustainable energy, aligning with global climate goals. The National Critical Minerals Mission, targeting exploration at 1200 sites, addresses reliance on imported minerals like lithium and cobalt, essential for technologies like semiconductors and batteries. With China dominating global supply chains, this mission is both economic and geopolitical. Modi’s announcement that India-made semiconductor chips will enter the market by the end of 2025, backed by 4600 crore rupees in investments for projects in Odisha, Punjab, and Andhra Pradesh, signals a push toward technological sovereignty. These efforts aim to position India as a trusted player in global supply chains, particularly as countries seek alternatives to China amid disruptions. Defense autonomy was a recurring theme, with Modi highlighting Operation Sindoor, a military operation showcasing India’s indigenous weapons systems. He called for developing fighter jet engines, advanced hardware, and a “Sudarshan Chakra” defense shield by 2035, inspired by Lord Krishna’s mythical weapon. This project, likened to an Indian Iron Dome, aims to create a layered defense system to neutralize threats and deliver precise counterstrikes. The defense sector, historically import-dependent, has seen progress under Make in India, with policies like raising FDI limits. The Sudarshan Chakra project underscores India’s ambition to achieve strategic autonomy while contributing to regional stability. Agriculture, employing millions and accounting for 18% of India’s GDP, received significant attention. Modi vowed to protect farmers “like a wall” against U.S. demands for market access, a stance rooted in political and economic realities. The 2021 repeal of farm laws after protests highlighted the sensitivity of agricultural reforms. Modi’s call for domestic fertilizer production and Swadeshi consumption aims to strengthen rural economies. The Pradhan Mantri Viksit Bharat Rozgar Yojana, a 100000 crore rupee scheme offering 15000-rupee grants to first-time private-sector employees and incentives for job creation, ties self-reliance to youth employment, addressing India’s demographic dividend. Demographic challenges were addressed through the High-Powered Demography Mission, aimed at tackling illegal infiltration and demographic imbalances in border regions. Framed as a national security issue, this reflects concerns within the BJP about population shifts in sensitive areas. While likely to resonate with Modi’s base, it risks controversy, as critics may view it as targeting specific communities. The mission underscores the government’s intent to link self-reliance with internal stability, ensuring economic progress is not undermined by social or security challenges. The Swadeshi and Vocal for Local campaigns draw on India’s freedom struggle while adapting to modern challenges. Unlike the boycott-driven Swadeshi movement, Modi’s version emphasizes pride in innovation. The success of domestic toy production and reduced air conditioner imports demonstrate consumer-driven growth. By urging citizens to prioritize local products, Modi seeks to reduce trade deficits, particularly with China, which accounts for 6.4 trillion rupees in imports. This cultural shift aims to drive industrial growth, creating jobs and enhancing economic resilience. The geopolitical context is critical. The U.S. tariffs, affecting $87 billion in exports, threaten sectors like textiles and gems. Yet, they provide an opportunity to diversify trade partners and strengthen domestic industries. Modi’s focus on semiconductors, minerals, and energy aligns with global supply chain shifts away from China. His call for indigenous social media platforms and digital infrastructure reflects concerns about data sovereignty and cybersecurity, critical in an era where digital ecosystems are geopolitical battlegrounds. The success of UPI and Aadhaar demonstrates India’s potential for innovation, but scaling globally remains a challenge. Critics warn that self-reliance must avoid past protectionist pitfalls, which led to inefficiency. Allegations of cronyism, with subsidies favoring select businesses, pose risks. The success of GST reforms and the minerals mission depends on transparent implementation and equitable benefits. India’s trade deficit with China requires massive investment in research, skilling, and infrastructure. Modi’s praise for the RSS on its centenary reflects its influence on his Swadeshi philosophy but risks alienating minorities. The rollback of the Indus Waters Treaty, following a terror attack in Pahalgam killing 26 people, signals assertiveness against Pakistan but risks regional escalation. In technology, Modi’s push for indigenous platforms and cybersecurity reflects the importance of digital sovereignty. Encouraging youth to develop solutions aligns with global trends. Economically, GST reforms and employment schemes could boost consumption and job creation. Socially, Modi’s call taps into middle-class aspirations, but success hinges on inclusive growth. Culturally, invoking figures like Syama Prasad Mookerjee and Mahatma Jyotiba Phule ties self-reliance to India’s heritage. Condemning the Emergency, which “strangled” the Constitution 50 years ago, reinforced constitutional values while critiquing opposition. Modi’s space ambitions, with the Gaganyaan mission and plans for a space station, reflect India’s growing prowess, with 300 space startups innovating. His call for youth to innovate in jet engines, AI, and deep-tech underscores skilling and research. The government’s scrapping of 40000 compliances and 1500 outdated laws demonstrates a commitment to modernizing governance. Women’s empowerment, through initiatives like NaMo Drone Didi and Lakhpati Didi, highlights gender equity, with 2 crore women achieving financial independence. In conclusion, Modi’s Independence Day address on August 15, 2025, was a bold articulation of India’s response to a world of economic and geopolitical flux. By championing self-reliance, he offered a vision balancing domestic strength with global engagement, rooted in cultural pride and pragmatic reforms. Spanning GST, energy, defense, and demographics, his announcements reflect a strategic approach to navigating external challenges while fostering resilience. Yet, the path to Viksit Bharat faces hurdles ensuring inclusive growth, avoiding protectionist pitfalls, and executing reforms transparently. Modi’s blueprint positions India to withstand global pressures and emerge as a leader, provided the nation translates vision into reality with unwavering commitment and equitable execution. Abhisht Chaturvedi is a Research Analyst at Insights International. His research interests include tech policy, media, and communications.

On July 15, 2025, Tesla Inc., the world’s foremost electric vehicle (EV) manufacturer, unveiled its first Indian showroom, christened the Tesla Experience Center, in the upscale Bandra-Kurla Complex Mumbai. This landmark event marked the culmination of nearly a decade of anticipation, negotiations, and strategic maneuvering, as Tesla set its sights on India, the world’s third-largest automotive market by volume. The launch, centered around the introduction of the refreshed Model Y, imported from Tesla’s Gigafactory in Shanghai, represents a cautious yet calculated move into a market brimming with potential but fraught with challenges. With India’s population projected to reach 1.7 billion by 2050 and a burgeoning middle class driving demand for premium products, Tesla’s entry is a strategic pivot at a time when the company faces declining sales in its core markets of the United States and China. The high import tariffs, which inflate the Model Y’s price to nearly $70,000, position Tesla as a luxury brand in India, competing with the likes of BMW and Mercedes-Benz rather than local mass-market players like Tata Motors and Mahindra & Mahindra. This article delves into the intricate story of Tesla’s entry into India, exploring the historical context, the motivations behind this bold move, the operational details of the launch, the formidable challenges ahead, and the transformative impacts this venture could have on India’s economy, automotive industry, and the global EV landscape over the coming decades. The road to Tesla’s Indian debut has been long and winding, marked by a series of promises, setbacks, and policy battles. As early as 2016, Tesla’s enigmatic CEO, Elon Musk, began teasing the company’s interest in India through posts on social media, igniting excitement among the country’s tech-savvy and environmentally conscious consumers. By 2019, Musk’s repeated assurances of an imminent launch fueled speculation, but India’s steep import tariffs, which ranged from 70% to 100% for foreign vehicles, posed a significant barrier. These tariffs made it economically unfeasible for Tesla to introduce its premium EVs without local manufacturing, a condition Musk was reluctant to meet without first testing the market. In 2021, Tesla took a significant step by incorporating Tesla India Motors and Energy Pvt. Ltd., signaling a formal commitment to the market. The company began scouting locations for showrooms in Mumbai, New Delhi, and Bengaluru and hired a small team to lay the groundwork. However, progress stalled in 2022 when Musk publicly criticized India’s trade policies, arguing that the high tariffs prevented Tesla from assessing demand without substantial upfront investment. The impasse seemed insurmountable until a pivotal meeting between Musk and Indian Prime Minister Narendra Modi in February 2025, during Modi’s state visit to the United States. Held in Washington, D.C., the discussion focused on Tesla’s potential investments in manufacturing and research and development (R&D), aligning with India’s vision to become a global hub for clean energy. Barely a month later, India unveiled a new EV policy that slashed import tariffs to 15% for vehicles priced under $35,000, provided the automaker committed to local production within three years. While Tesla’s current offerings exceed this price threshold, the policy shift signaled India’s willingness to accommodate global players, paving the way for Tesla’s launch in July 2025. The strategic rationale behind Tesla’s entry into India is multifaceted, driven by a combination of market potential, government incentives, and global competitive pressures. India’s automotive market, with over 3 million vehicles sold annually, is a tantalizing prospect for any automaker. The projected growth of India’s middle class, expected to add 75 million households by 2030, alongside 25 million affluent households, underscores the country’s rising purchasing power. This demographic shift is particularly significant for Tesla, whose premium EVs cater to affluent, tech-savvy consumers in urban centers like Mumbai and Delhi. The Indian government’s ambitious target of achieving 30% EV penetration by 2030, coupled with incentives such as subsidies for EV buyers, tax exemptions, and investments in charging infrastructure, aligns seamlessly with Tesla’s mission to accelerate the global transition to sustainable energy. These policies reflect India’s urgent need to address urban air pollution, a critical issue in cities like Delhi, which consistently ranks among the world’s most polluted. For Tesla, India represents a high-growth opportunity at a time when its core markets are under strain. In the United States, Tesla’s sales have been impacted by a shift in consumer preferences toward hybrids and controversies surrounding Musk’s political activities, including his alignment with President Donald Trump and the formation of the “America Party.” In China, Tesla faces fierce competition from domestic giants like BYD, which surpassed Tesla in European EV sales in April 2025. With global EV sales declining by 13.5% in the second quarter of 2025, India’s nascent EV market, which accounts for only 4% of total vehicle sales, offers a fresh frontier for Tesla to establish a foothold before competitors dominate. The mechanics of Tesla’s launch in India reflect a meticulous and phased approach, tailored to the country’s unique market dynamics. The Mumbai showroom, a 4,000-square-foot space in the Bandra-Kurla Complex, serves as Tesla’s flagship retail and customer engagement hub. Mumbai, India’s financial capital with a metropolitan population exceeding 23 million, is an ideal launchpad for targeting affluent consumers who value Tesla’s brand cachet and cutting-edge technology. The Model Y, Tesla’s best-selling vehicle globally, is the sole offering at launch, available in two variants: the standard range with a 500-kilometer range and the long-range with a 622-kilometer range. Imported from Tesla’s Shanghai Gigafactory, which produces right-hand-drive models for India, the Model Y carries a steep price tag of 6.1 million rupees ($70,000) for the rear-wheel-drive version and 6.8 million rupees ($80,000) for the long-range version, driven by India’s high import tariffs. Tesla has invested approximately $1 million in importing vehicles, chargers, and accessories, primarily from China and the United States, to support its initial operations. Deliveries are slated to begin in the third quarter of 2025, with plans for additional showrooms in New Delhi and other major cities in the pipeline. At the launch event, Tesla’s regional director emphasized the company’s commitment to building an “EV ecosystem” in India, which includes deploying charging stations and service centers to support its customers. To this end, Tesla has hired a team of store managers, sales executives, service technicians, and supply chain engineers, many of whom are based in Mumbai. While Tesla has not yet committed to local manufacturing, Musk has hinted at the possibility of a Gigafactory in India, which could leverage the country’s lower labor and land costs to reduce production expenses by $2-3 billion compared to facilities in the U.S. or Germany. This cautious approach—importing vehicles while exploring long-term investment—allows Tesla to test the market while navigating ongoing U.S.-India trade negotiations aimed at reducing tariffs. Despite the excitement surrounding Tesla’s entry, the company faces formidable challenges in India’s complex and price-sensitive market. The most immediate hurdle is the high cost of its vehicles. With an average annual income of approximately $4,000, the $70,000 starting price for the Model Y places it firmly in the luxury segment, which accounts for just 1% of India’s total vehicle sales. This pricing positions Tesla in direct competition with established luxury brands like BMW, Mercedes-Benz, and Audi, rather than domestic EV players like Tata Motors, whose Nexon EV starts at around $12,000 with battery rental options. India’s EV market, while growing rapidly—sales have surged 20-fold since 2020—remains nascent, with EVs constituting only 4% of total vehicle sales. The lack of widespread charging infrastructure, particularly outside major urban centers, poses a significant barrier to adoption. Although the government is investing in charging networks, progress has been slow, and Tesla will need to allocate substantial resources to ensure its customers have reliable access to charging stations. Competition is another challenge, as domestic manufacturers like Tata and Mahindra dominate the affordable EV segment, while international players like Kia and BMW are expanding their premium EV offerings. Chinese automaker BYD, which has gained ground in Europe, is also eyeing India, leveraging its cost advantages and experience in mass-market EVs. Regional variations in taxes, such as a $6,700 road tax in Gurugram compared to Delhi, further complicate pricing strategies. Moreover, Musk’s polarizing public persona, particularly his political activities in the U.S., has alienated some Indian consumers who once viewed Tesla as a beacon of environmental progress. Early Tesla backers, who placed reservation fees as early as 2016, have expressed frustration over delays and difficulties in securing refunds, dampening enthusiasm for the brand’s debut. The economic and industrial impacts of Tesla’s entry into India could be transformative, provided the company navigates these challenges successfully. Economically, Tesla’s presence is likely to stimulate job creation and investment. While the initial hiring of a few dozen employees in Mumbai is modest, a future Gigafactory could generate thousands of direct and indirect jobs, boosting local supply chains and supporting India’s ambition to become a global manufacturing hub. Companies like Hindalco and Suprajit Engineering, which supply aluminum and automotive components, could benefit from partnerships with Tesla, driving growth in ancillary industries. The automotive sector stands to gain from increased competition, which could spur innovation among domestic manufacturers. The chairman of Mahindra & Mahindra welcomed Tesla’s entry, noting that competition drives progress and expressing optimism about the potential for a more robust EV ecosystem. Tesla’s advanced technologies, such as its Full Self-Driving (FSD) system, priced at an additional $7,000 in India, could push local players to accelerate their R&D efforts, though FSD’s requirement for active driver supervision limits its immediate impact. Environmentally, Tesla’s presence aligns with India’s efforts to combat air pollution, a pressing issue in urban centers. By promoting EV adoption, Tesla could contribute to reducing greenhouse gas emissions and dependence on fossil fuels, though its high prices initially restrict this impact to affluent consumers. The company’s investment in charging infrastructure will complement government initiatives, potentially accelerating India’s transition to clean mobility and supporting the 30% EV penetration target by 2030. Globally, Tesla’s entry into India could reshape the EV market and bolster the company’s position amid declining sales in its core markets. A successful foothold in India would provide a new revenue stream, offsetting the 13.5% drop in global deliveries reported in Q2 2025. It could also position India as an export hub for right-hand-drive markets in Asia and Africa, leveraging the country’s cost advantages. However, Tesla’s high pricing strategy risks ceding the mass market to competitors like BYD, which could capitalize on India’s price-sensitive segment. In the medium term, Tesla’s plans for local manufacturing will be critical. A Gigafactory in India, potentially in Gujarat or Maharashtra, could reduce costs and enable Tesla to offer more competitive pricing, aligning with the government’s new EV policy. The introduction of a more affordable model, often referred to as the “Model 2,” rumored to be priced around $30,000, could further expand Tesla’s reach, targeting India’s growing middle class. In the long term, Tesla’s autonomous driving ambitions, including its robotaxi service and Optimus humanoid robot, could transform India’s mobility landscape, though regulatory and infrastructure challenges will delay adoption. The recent regulatory approval of Musk’s Starlink service in India could enhance Tesla’s connectivity for autonomous features, creating synergies between Musk’s ventures. Geopolitically, Tesla’s entry is intertwined with U.S.-India trade negotiations, as ongoing talks to reduce tariffs could lower vehicle costs and facilitate further investment. Looking ahead, Tesla’s success in India will hinge on its ability to adapt to the market’s unique dynamics. In the short term, Tesla will focus on the luxury segment, appealing to affluent consumers in urban centers who value its brand and technology. The Model Y’s premium positioning and Tesla’s sleek showroom design will create a buzz, though high prices and limited infrastructure will constrain sales volumes. In the medium term, local manufacturing will be a game-changer, enabling Tesla to leverage India’s cost advantages and compete more effectively with domestic and international rivals. The rumored Model 2, if launched by late 2025, could broaden Tesla’s appeal, tapping into the growing middle class. Long-term, Tesla’s vision for autonomous driving and smart infrastructure could redefine mobility in India, particularly in congested urban areas. However, regulatory hurdles, such as restrictions on fully autonomous vehicles, and the need for robust charging networks will require significant investment and collaboration with the government. Tesla’s entry also carries symbolic weight, signaling India’s growing importance in the global EV market and its potential to become a hub for advanced manufacturing. For Musk, India represents a high-stakes bet to revitalize Tesla’s growth trajectory while navigating a complex and competitive landscape. In Conclusion Tesla’s launch in India is a bold and strategic move that reflects both the company’s ambition and the realities of entering one of the world’s most dynamic markets. The high cost of the Model Y, limited EV infrastructure, and fierce competition pose immediate challenges, but India’s demographic trends, government support, and long-term growth potential offer unparalleled opportunities. Tesla’s entry could drive economic growth, spur innovation, and accelerate India’s transition to clean mobility, while providing Tesla with a new frontier to offset global challenges. As Musk navigates the intricacies of India’s market, from trade policies to consumer preferences, the world will be watching to see whether this cautious bet transforms into a transformative success, reshaping the future of mobility in India and beyond. Abhisht Chaturvedi is a Research Analyst at Insights International. His research interests include tech policy, media, and communications.

In a transformative move toward safeguarding personal data in the digital age, India’s Ministry of Electronics and Information Technology (MeitY) unveiled the Business Requirements Document (BRD) for Consent Management Systems (CMS) under the Digital Personal Data Protection (DPDP) Act, 2023, in June 2025. This document  serves as a meticulously crafted blueprint for organizations aiming to align with the DPDP Act’s rigorous standards for managing user consent. As India stands on the cusp of operationalizing its comprehensive data protection framework, the BRD emerges as an indispensable tool for data fiduciaries, processors, and consent managers navigating the complexities of compliance. The DPDP Act, which received presidential assent on August 11, 2023, lays the foundation for governing the collection, processing, and disclosure of personal data in India. However, its provisions remain dormant pending a notification from the Central Government specifying the enforcement date. Complementing the Act, MeitY introduced the Draft Digital Personal Data Protection Rules, 2025, on January 3, 2025, inviting public feedback until March 5, 2025. These rules aim to provide granular procedural and technical guidelines to bring the Act to life. Within this evolving regulatory landscape, the BRD offers a forward-looking perspective, detailing the technical and functional expectations for consent management systems. This exploration delves deeply into the BRD’s objectives, components, and requirements, illuminating its role in shaping India’s data protection ecosystem and its implications for stakeholders. The DPDP Act marks a watershed moment in India’s efforts to protect personal data amid the rapid expansion of digital services, e-commerce, and data-driven technologies. As India’s digital economy flourishes, the risks associated with unchecked data collection and processing have grown exponentially, necessitating a robust legal framework. The Act introduces key stakeholders: Data Principals, the individuals whose data is processed; Data Fiduciaries, entities that determine the purpose and means of data processing; and Data Processors, who handle data on behalf of fiduciaries. Central to the Act is the principle of consent, articulated in Section 6, which mandates that consent must be free, specific, informed, unconditional, unambiguous, and expressed through clear affirmative actions. The BRD builds on this foundation, envisioning a CMS that seamlessly manages the entire consent lifecycle—encompassing collection, validation, modification, renewal, and withdrawal—while prioritizing user empowerment, transparency, and regulatory compliance. Issued through MeitY’s Startup Hub as part of the “Code for Consent” Innovation Challenge, the BRD is a non-binding technical guide aimed at startups, developers, and organizations. By providing a detailed roadmap, it enables proactive preparation for compliance, offering clarity on the technical infrastructure needed to meet the Act’s requirements and anticipated obligations under the forthcoming rules. The BRD’s overarching goal is to create a user-centric CMS that empowers Data Principals to exercise granular control over their personal data while ensuring that Data Fiduciaries and Processors adhere to stringent legal standards. It envisions a system that facilitates transparent consent management across diverse platforms, such as websites and mobile applications, through intuitive, accessible interfaces. The CMS must provide clear, multilingual consent notices that inform users about the purposes of data collection, their rights under the DPDP Act, and data retention policies. Real-time consent validation is a cornerstone, ensuring that data processing occurs only when valid, purpose-specific consent is in place. The system must also support immediate cessation of processing upon consent withdrawal, reinforcing user autonomy. To achieve these objectives, the BRD advocates for a modular, standards-based system architecture that emphasizes scalability, interoperability, and security. It recommends secure APIs for seamless communication between stakeholders, encryption for data protection, and time-stamped consent artifacts for tamper-proof record-keeping. Privacy-by-design principles, such as role-based access control (RBAC) and multi-factor authentication (MFA), are integral to safeguarding system integrity and administrative accounts. A pivotal aspect of the BRD is its detailed exposition of the consent management lifecycle, which comprises five critical stages: consent collection, validation, update, renewal, and withdrawal. During consent collection, the CMS must present an accessible, user-friendly interface compliant with Web Content Accessibility Guidelines (WCAG) to accommodate users with disabilities. Consent notices must be purpose-specific, explicitly distinguishing mandatory data uses (e.g., account creation) from optional ones (e.g., targeted advertising or analytics), thereby prohibiting “bundled consent.” Users are required to perform clear, affirmative actions—such as clicking “I Agree” or selecting a checkbox—to grant consent, with default settings ensuring that optional consent options remain unchecked. The CMS must support multilingual notices, including English and languages listed in the Eighth Schedule of the Constitution of India, to ensure inclusivity. Upon consent submission, the system generates a Consent Artifact, a secure, time-stamped record containing metadata such as User ID, Purpose ID, consent status, language preference, and session ID. This artifact is stored in a tamper-proof database and synchronized in real time with internal systems and third-party processors via APIs. Comprehensive audit logging captures every action, including timestamps and consent metadata, to facilitate regulatory compliance and audits. Consent validation is a critical safeguard outlined in the BRD, ensuring that Data Fiduciaries verify the existence of valid, purpose-specific consent before initiating data processing. The CMS conducts real-time checks to confirm that consent exists for the specified User ID and Purpose ID, remains active, and has not been withdrawn or expired. Metadata validation includes verifying User ID, Purpose ID, consent timestamp, and status. Scope validation ensures that the processing request aligns with the consented purpose—for instance, data collected for identity verification cannot be used for marketing without explicit consent. The validation process is triggered by API calls from Data Fiduciaries, enabling seamless integration with their systems. The CMS responds with a validation outcome—valid or invalid—with invalid requests resulting in denied processing and user notification. All validation activities are logged in immutable audit trails, providing a transparent record for compliance. This rigorous approach underscores the DPDP Act’s principles of purpose limitation and data minimization, ensuring that only explicitly consented data is processed. The BRD also provides detailed guidance on consent updates and renewals, enabling Data Principals to modify their preferences or extend expiring consents. For updates, users can access the CMS dashboard to revise consent for specific purposes, such as opting out of analytics while retaining consent for service-related communications. The system validates the updated preferences, generates a new Consent Artifact, and notifies all stakeholders, including Data Fiduciaries and Processors, to ensure real-time synchronization. For renewals, the CMS proactively notifies users of impending consent expirations, typically 30 days in advance, offering a streamlined renewal process. Renewed consents are logged with updated metadata, including new timestamps and purpose IDs, and synchronized across systems. Both processes prioritize transparency, requiring clear explanations of changes and active user agreement. The BRD’s focus on user empowerment is evident, as it ensures that Data Principals retain ongoing control over their data while complying with the Act’s requirements for revocability and transparency Consent withdrawal is a cornerstone of the DPDP Act’s commitment to user autonomy, and the BRD outlines a streamlined process to uphold this right. Data Principals can withdraw consent for specific purposes through the CMS dashboard, with the process designed to be as intuitive as granting consent. Upon withdrawal, the CMS updates the Consent Artifact to reflect the “withdrawn” status, logs the action, and notifies Data Fiduciaries and Processors to immediately halt related data processing. The system informs the user of the implications, such as the potential loss of certain services or features. Metadata, including User ID, Purpose ID, and timestamp, is recorded for auditability. Real-time synchronization prevents unauthorized processing post-withdrawal, with exceptions permitted only for legally mandated data retention. This immediate cessation requirement reinforces the Act’s emphasis on user control, ensuring that Data Principals can revoke consent without delay or complexity. The BRD extends its scope to cookie consent management, addressing the DPDP Act’s applicability to tracking technologies. The CMS must display a cookie notice banner on a user’s first visit to a website or application, informing them about cookie usage and offering granular control options. Users can consent to specific cookie categories—essential, performance, analytics, or marketing—with essential cookies enabled by default and non-essential cookies disabled until explicit consent is granted. The system logs all cookie consent actions, including timestamps and preferences, and supports real-time updates through a dedicated cookie preferences interface. Cookie notices must be multilingual and accompanied by a clear, accessible cookie policy detailing usage, purposes, and data-sharing practices. The BRD mandates auto-expiry for cookie preferences and adherence to data retention policies, ensuring that user choices are respected over time. This approach aligns with global privacy standards, such as the GDPR, while addressing India-specific requirements under the DPDP Act. The user dashboard is a pivotal feature of the CMS, designed to foster transparency and empower Data Principals. It enables users to view their consent history, including active, expired, and withdrawn consents, with metadata such as timestamps and purpose IDs displayed for clarity. Search and filter functionalities facilitate navigation, while export options allow users to download their consent history in secure formats like PDF or CSV. The dashboard supports consent modification or revocation, enabling users to update preferences or withdraw consent in real time. Upon such actions, the CMS validates the request, updates the Consent Artifact, and notifies stakeholders, ensuring immediate compliance. The dashboard also includes a grievance redressal mechanism, allowing users to raise complaints about consent violations or data misuse. Users can submit grievances through a simplified form, track their status in real time, and receive notifications about resolution outcomes. The system automatically escalates unresolved complaints to the Data Protection Officer (DPO) or designated authority, ensuring timely resolution. This user-centric design underscores the BRD’s commitment to building trust and accountability. The notification module ensures that all stakeholders—Data Principals, Data Fiduciaries, and Data Processors—are kept informed about consent-related activities. User notifications cover actions such as consent approvals, withdrawals, renewals, and data request updates, delivered via email, SMS, or in-app messages. These notifications are customizable, multilingual, and include acknowledgment mechanisms where required. For Data Fiduciaries and Processors, the CMS generates real-time alerts for consent changes, such as withdrawals or expirations, through secure APIs. Alerts include actionable instructions, such as halting data processing for specific User IDs. Unacknowledged alerts trigger escalation workflows to ensure compliance. All notifications and alerts are logged in immutable audit trails, providing a comprehensive record for regulatory purposes. This multi-channel, event-driven system enhances operational efficiency and transparency, ensuring alignment across stakeholders. The grievance redressal mechanism is a critical component of the BRD, designed to address Data Principals’ concerns about data handling practices. The CMS provides a user-friendly interface for submitting complaints, with predefined categories such as consent violations, data breaches, or processing errors. Each complaint is assigned a unique reference ID, and users receive acknowledgment notifications upon submission. The system routes complaints to the appropriate team, such as the DPO, and provides real-time status updates through the user dashboard. Escalation workflows ensure that unresolved complaints are escalated within predefined timeframes, while action logs document every step of the resolution process. Users can provide feedback on resolutions, fostering continuous improvement. The BRD’s emphasis on transparency and efficiency in grievance redressal aligns with the DPDP Act’s mandate to protect user rights and ensure accountability. System administration is a vital aspect of the BRD, focusing on secure and efficient CMS operations. The user role management module implements RBAC, assigning permissions based on predefined roles such as Administrator, DPO, Auditor, or Operator. Custom roles can be created to meet organizational needs, and access revocation is supported in real time to address misuse. Authentication mechanisms, including MFA and single sign-on (SSO), enhance security for administrative accounts. Role changes and user activities are logged in audit trails, ensuring traceability. The data retention policy configuration module allows administrators to define retention schedules for personal data and consent artifacts, with automated deletion protocols for expired records. Exemptions for legally mandated data retention are supported, and all retention and deletion activities are logged for compliance. These administrative capabilities ensure that the CMS remains secure, scalable, and aligned with regulatory requirements. Logging is a foundational element of the BRD’s compliance framework, ensuring that all consent-related activities are documented in a tamper-proof manner. The CMS maintains comprehensive audit logs, recording actions such as consent grants, updates, withdrawals, and notifications, along with metadata like User ID, Purpose ID, timestamps, and cryptographic hashes. These logs are structured for easy retrieval and reporting, supporting regulatory audits and dispute resolution. Access to audit logs is restricted through RBAC and MFA, ensuring security. The BRD’s emphasis on immutable logging reflects the DPDP Act’s requirement for accountability, enabling organizations to demonstrate compliance and resolve disputes efficiently. The BRD’s release signals India’s commitment to operationalizing a robust data protection regime. While the DPDP Act awaits enforcement, the Draft Rules and BRD provide critical guidance for organizations preparing for compliance. Entities subject to the Act should leverage the BRD to assess existing consent management practices, identify gaps, and design compliant systems. Key actions include mapping data processing activities to specific purposes, implementing granular consent interfaces, and integrating secure APIs for real-time validation. The BRD’s technical recommendations, such as encryption, time-stamped artifacts, and privacy-by-design principles, offer a roadmap for building robust CMS platforms. As the final rules and enforcement timeline approach, proactive adoption of the BRD’s guidelines will position organizations to navigate compliance with confidence. In conclusion, the BRD for Consent Management Systems under the DPDP Act is a visionary resource that bridges regulatory intent and technical implementation. By providing a comprehensive framework for consent lifecycle management, user empowerment, and system security, it equips stakeholders with the tools to build compliant, user-centric platforms. As India’s data protection regime takes shape, the BRD serves as a guiding light for organizations striving to align with the Act’s principles of transparency, accountability, and user autonomy. While challenges such as multilingual support, scalability, and integration persist, the BRD’s modular approach offers flexibility to address diverse needs. By embracing its recommendations, organizations can achieve compliance and foster trust in an increasingly data-driven world Abhisht Chaturvedi is a Research Analyst at Insights International. His research interests include tech policy, media, and communications.

On May 16, 2025, India and the European Union (EU) concluded the 11th round of negotiations for their proposed Free Trade Agreement (FTA) in New Delhi, marking a pivotal step toward deepening economic ties in a volatile global trade landscape. Both sides have agreed to pursue a two-phase approach to finalize the deal by the end of 2025, a strategy driven by uncertainties stemming from U.S. tariff policies under President Donald Trump. The FTA, covering 23 policy areas, aims to enhance market access for goods, services, and investment, with bilateral goods trade already valued at $137.41 billion in 2023–24. This article provides a comprehensive, researched analysis of the 11th round, the rationale and structure of the two-phase strategy, and the broader implications for India, the EU, and global trade dynamics. By exploring historical context, key sectors, political dimensions, challenges, and comparative perspectives, it seeks to illuminate the significance of this moment in India-EU relations, while critically examining the complexities and potential pitfalls of the negotiations. The FTA is not merely a trade pact; it represents a strategic alignment between a rising economic power and a 27-nation bloc seeking to bolster its global influence. With the EU accounting for 17% of India’s total exports and India representing 9% of EU overseas sales, the stakes are high. The two-phase approach, inspired by India’s trade agreements with Australia and ongoing U.S. talks, aims to secure early wins while deferring contentious issues. This article delves into the intricacies of the negotiations, offering a nuanced understanding of the opportunities and challenges ahead. Historical Context of India-EU Trade Relations India and the EU have cultivated economic ties since the 1960s, with formal diplomatic relations established in 1962. Over decades, the EU has become India’s largest trading partner for goods, with bilateral trade reaching $137.41 billion in 2023–24, including $75.92 billion in Indian exports and $61.48 billion in imports. Trade in services, valued at $51.45 billion in 2023, further underscores the depth of this relationship. The first attempt at an FTA began in 2007 but stalled in 2013 due to disagreements over market access, tariff liberalization, and intellectual property rights (IPR). India’s reluctance to open its auto and agricultural sectors clashed with the EU’s demands for duty cuts on automobiles, wines, and spirits, as well as stronger IPR protections, leading to an eight-year hiatus. Negotiations resumed in June 2022, driven by mutual recognition of the need to counter global trade uncertainties, including Brexit, rising protectionism, and China’s economic dominance. The India-EU Leaders’ Meeting in Porto on May 8, 2021, set the stage for this revival, with both sides agreeing to pursue a balanced, ambitious, and mutually beneficial FTA, alongside separate Investment Protection Agreement (IPA) and Geographical Indications (GI) Agreement. Since 2022, talks have progressed through 11 rounds, addressing complex issues like rules of origin, sanitary measures, and sustainable development. The historical context reveals the challenges of aligning diverse economic interests but also the growing urgency to finalize the FTA amid geopolitical shifts. The resumption reflects a strategic pivot for both parties. For India, the FTA is an opportunity to enhance export competitiveness and integrate into global value chains. For the EU, it offers access to one of the world’s fastest-growing markets, especially as Europe faces economic challenges. The 11th round builds on this renewed momentum, leveraging lessons from past failures to navigate current complexities. The 11th Round: Key Developments and Focus Areas The 11th round of India-EU FTA negotiations, held in New Delhi from May 12–16, 2025, was a critical milestone. An official source confirmed the round’s conclusion, noting that both sides agreed to finalize the deal in two phases due to global trade uncertainties, particularly U.S. tariff actions. The negotiations, led by chief negotiators, focused on market access for goods, services, and investment, spanning 23 policy areas, including trade in goods, services, customs procedures, intellectual property, and sustainable development. The discussions built on the 10th round in Brussels (March 2025), which advanced talks on sanitary measures, dispute settlement, and regulatory practices. Commerce and Industry Minister Piyush Goyal’s visit to Brussels on May 1, 2025, set the stage, with Goyal emphasizing a fair and equitable trade agenda. The two-phase approach emerged as a pragmatic response to complex issues, with Phase 1 targeting areas of convergence, such as market access and customs facilitation, and Phase 2 addressing contentious topics like IPR and sustainability. Emerging concerns, such as the EU’s carbon tax and India’s Quality Control Orders (QCOs), were also discussed, reflecting their significance. Sentiment on X highlighted progress in aligning tariff schedules and regulatory frameworks, though some posts noted ongoing tensions over IPR and auto tariffs. The 11th round’s focus on core trade issues signals a commitment to early outcomes. India pushed for enhanced market access for exports like ready-made garments and pharmaceuticals, while the EU sought duty cuts on automobiles, wines, and spirits. The phased strategy mirrors India’s approach in other trade deals, offering a framework to navigate global volatility while addressing domestic sensitivities. The Two-Phase Approach: Rationale and Structure The two-phase approach is a cornerstone of the India-EU FTA negotiations, designed to address the complexities of aligning diverse economic priorities. The strategy, influenced by U.S. tariff policies, prioritizes areas of convergence in Phase 1, such as market access for goods and services, customs procedures, and rules of origin. Phase 2, targeted for completion by year-end, will tackle more challenging issues, including IPR, sustainability, and government procurement. This approach draws inspiration from India’s FTA with Australia, where a phased strategy enabled early implementation of core provisions, and ongoing U.S. talks, reflecting a broader trend in global trade negotiations. The phased approach offers several advantages: it builds momentum, secures tangible benefits early, and allows negotiators time to resolve contentious issues. For instance, Phase 1 could eliminate tariffs on a significant portion of Indian exports, enhancing competitiveness in sectors like textiles and pharmaceuticals. However, risks remain, including potential delays in Phase 2 and the possibility of diluted outcomes if disagreements persist. The EU’s demands for duty cuts on automobiles and a robust IPR regime pose challenges for India, which seeks to protect domestic industries and ensure affordable access to medicines. Sentiment on X suggests optimism about the phased approach but cautions against overpromising on timelines. The strategy aligns with India’s broader trade policy, which emphasizes flexibility in navigating global protectionism. The EU’s willingness to adopt this approach reflects its recognition of India’s developmental priorities and the need for a balanced agreement. The success of the two-phase approach will depend on both sides’ ability to maintain momentum and bridge gaps in Phase 2. Key Sectors and Economic Impacts The India-EU FTA holds immense potential to transform bilateral trade, particularly for Indian exports. Sectors like ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery are expected to gain a competitive edge in the EU market, which accounts for 17% of India’s total exports. In 2023–24, India’s exports to the EU were valued at $75.92 billion, and the FTA could lower tariffs and non-tariff barriers, boosting market share. The pharmaceutical sector, a global leader in generic drugs, could benefit from streamlined regulatory approvals, enhancing access to the EU’s $300 billion market. Similarly, textiles and steel could see increased demand with reduced trade barriers. The EU seeks significant duty reductions on automobiles, medical devices, wines, and spirits, as well as a stronger IPR regime. The EU exports over $2 billion in automobiles and auto parts to India annually, often in completely knocked-down (CKD) form, facing a 15% tariff. Lowering these tariffs could make European luxury brands like BMW and Mercedes more affordable, but it raises concerns among Indian automakers, who employ over 40 million people and contribute one-third of India’s manufacturing GDP. Domestic manufacturers fear job losses and reduced incentives for local production, a concern echoed in India’s reluctance to lower auto tariffs in FTAs with Japan and South Korea. Bilateral trade in services, valued at $51.45 billion in 2023, is another critical area. The FTA aims to facilitate access for Indian IT professionals and service providers in the EU, while the EU seeks opportunities in financial and professional services. The agreement could attract investment, with the proposed Investment Protection Agreement (IPA) providing legal certainty. Posts on X highlight the FTA’s potential to enhance export competitiveness, though some express concerns about its impact on domestic industries. Balancing these economic gains with domestic sensitivities will be crucial for India’s negotiators. Political and Diplomatic Dimensions The FTA negotiations are underpinned by strong political will. On February 28, 2025, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen committed to concluding the deal by year-end, a pledge that shaped the 11th round’s agenda. Von der Leyen’s visit to India in February 2025, accompanied by 22 EU Commissioners, reinvigorated momentum, as noted in posts on X. Commerce Minister Piyush Goyal’s engagement with EU counterparts, including his May 1, 2025, visit to Brussels, reinforced India’s push for equitable trade terms, emphasizing the principle of “common but differentiated responsibility” to account for India’s developmental stage. The geopolitical context is significant. U.S. tariff threats have accelerated India-EU efforts, positioning the FTA as a counter to protectionism. India’s advocacy for flexibility on sustainability and labor standards reflects its status as a developing nation, while the EU sees the FTA as a gateway to India’s growing market amid economic challenges in Europe. High-level dialogues under the India-EU Trade and Technology Council (TTC), established in 2022, have fostered trust, with discussions extending to AI, semiconductors, and green energy. These diplomatic efforts underscore the strategic importance of the partnership, which transcends trade to encompass broader cooperation. The political commitment is tempered by domestic pressures. In India, stakeholders like the auto industry and farmers express concerns about increased competition, while the EU faces internal debates over balancing trade liberalization with sustainability goals. The ability to navigate these pressures will determine the FTA’s success. Additional Agreements and Broader Cooperation Beyond the FTA, India and the EU are negotiating an Investment Protection Agreement (IPA) and an Agreement on Geographical Indications (GIs). The IPA aims to provide legal certainty for EU investors, encouraging investment in India’s manufacturing and services sectors. The GI Agreement seeks to protect products like Basmati rice and Darjeeling tea, enhancing their market value in the EU. These agreements complement the FTA, strengthening economic ties. The FTA is part of a broader strategic partnership. The 11th round discussed digital trade, supply chain resilience, and green technology, reflecting shared priorities in addressing global challenges. The TTC has facilitated collaboration in AI, semiconductors, and clean energy, positioning the FTA as a cornerstone of India-EU relations. Posts on X highlight the FTA’s role in addressing issues like the EU’s carbon tax, indicating its relevance to global challenges. This multifaceted approach enhances the partnership’s resilience, aligning economic goals with strategic objectives. The broader cooperation extends to areas like connectivity, sustainable urbanization, and women’s empowerment, as discussed during von der Leyen’s February 2025 visit. These initiatives reflect the FTA’s role as a catalyst for deeper engagement, with potential to shape India-EU relations for decades. Challenges and Criticisms The FTA faces significant challenges. Disagreements over market liberalization, particularly in automobiles and agriculture, persist. The EU’s demands for duty cuts and a robust IPR regime clash with India’s concerns about protecting domestic industries and ensuring affordable access to medicines. India’s auto sector, a major economic pillar, opposes tariff reductions, fearing competition from European imports. Similarly, the pharmaceutical industry worries about stringent IPR rules that could limit generic drug production, a critical component of India’s global health contributions. The EU’s emphasis on sustainability, gender, and labor standards has sparked debate. India argues that such commitments should account for its developmental stage, adhering to the principle of “common but differentiated responsibility.” Critics warn that the phased approach risks delaying critical issues, potentially diluting theFTA’s impact. Domestic stakeholders, including farmers and small businesses, express concerns about increased competition from EU imports, a sentiment echoed in posts on X. For instance, some posts question the FTA’s benefits for India’s agricultural sector, highlighting the need for protective measures. The EU also faces internal challenges, with member states balancing economic interests against sustainability goals. The carbon tax, which imposes costs on carbon-intensive imports, has raised concerns in India about its impact on steel and cement exports. These challenges underscore the need for flexibility and compromise to ensure a mutually beneficial agreement. The phased approach, while pragmatic, must be carefully managed to avoid prolonged negotiations or weakened outcomes. Comparative Analysis with Other FTAs India’s FTA with the EU can be contextualized by its agreements with Australia, the UK, and the European Free Trade Association (EFTA). The India-Australia FTA, implemented in phases, offers a model for balancing immediate gains with long-term negotiations. Phase 1 of the Australia deal eliminated tariffs on 85% of Indian exports, providing a template for the EU’s Phase 1. The India-UK FTA, concluded on May 6, 2025, addressed similar issues like market access and IPR, with India securing concessions on professional mobility while offering duty cuts on select UK vehicles. The EFTA agreement, signed in March 2024, secured a $100 billion investment commitment, highlighting India’s ability to negotiate strategic deals. The EU, as a 27-nation bloc, presents unique challenges due to its diverse interests and stringent standards. Unlike the UK or Australia, the EU’s focus on sustainability and regulatory harmonization requires India to navigate complex negotiations. For instance, the EU’s carbon tax and labor standards are more rigorous than those in the UK or EFTA deals. India’s experience with these FTAs has strengthened its negotiating capacity, enabling it to protect domestic interests while securing market access abroad. Lessons from the UK FTA, such as addressing visa barriers for Indian professionals, could inform the EU negotiations. The comparative analysis highlights the EU FTA’s complexity but also India’s growing expertise in trade negotiations. The two-phase approach, while novel for the EU, aligns with India’s strategic shift toward flexible trade agreements, as seen in its Australia and U.S. talks. The EU’s willingness to adopt this approach suggests a pragmatic adaptation to India’s priorities, setting the stage for a potentially transformative deal. Future Prospects and Conclusion The India-EU FTA is poised to reshape bilateral trade and strengthen strategic ties. With the 11th round concluded and a two-phase approach in place, both sides are on track to meet their year-end deadline. Phase 1 could deliver immediate benefits, such as tariff reductions on Indian exports, while Phase 2 will test their ability to resolve contentious issues like IPR and sustainability. The FTA promises significant economic gains, from boosting Indian exports to attracting EU investment, with bilateral trade projected to grow substantially. For India, the FTA offers a chance to enhance its global trade profile and counter protectionist trends. By securing market access for key sectors, India can strengthen its position in global value chains. For the EU, the agreement provides access to a dynamic market and a partner in addressing global challenges like climate change and digital transformation. However, success hinges on resolving disagreements and balancing domestic priorities. India must protect its auto and agricultural sectors while leveraging the FTA’s opportunities, while the EU must accommodate India’s developmental needs without compromising its standards. The broader strategic partnership, encompassing the IPA, GI Agreement, and TTC initiatives, enhances the FTA’s significance. Sentiment on X reflects cautious optimism, with some praising the FTA’s potential and others urging vigilance to protect domestic interests. As negotiations progress, both sides must prioritize mutual gains and flexibility to ensure a balanced agreement. The India-EU FTA is a testament to the power of cooperation in an uncertain world, with the potential to redefine economic relations and set a precedent for future trade agreements. Abhisht Chaturvedi is a Research Analyst at Insights International. His research interests include tech policy, media, and communications.

On May 6, 2025, Britain and India signed a historic Free Trade Agreement (FTA), a milestone hailed as the United Kingdom’s most significant trade deal since its departure from the European Union in 2020. This agreement, finalized after three years of intricate and often turbulent negotiations, is projected to increase bilateral trade by £25.5 billion ($34 billion) by 2040, delivering substantial economic benefits to both nations. The timing of the FTA is particularly noteworthy, as it comes amidst a global trade landscape disrupted by U.S. President Donald Trump’s aggressive tariff policies, which have imposed 10-20% duties on imports, affecting supply chains and increasing costs for industries worldwide. For the UK, the deal is a cornerstone of its post-Brexit strategy to forge partnerships with fast-growing economies, reducing reliance on traditional markets like the EU and the U.S. For India, it aligns with its ambition to diversify export markets and achieve $1 trillion in exports by FY30. This article provides a comprehensive exploration of the UK-India FTA, delving into its historical context, negotiation dynamics, detailed provisions, economic impacts, stakeholder reactions, potential challenges, and its broader implications for global trade, drawing on every available detail from credible sources such as the UK government, Reuters, The Guardian, and India’s Press Information Bureau (PIB). The origins of the UK-India FTA trace back to January 13, 2022, when the UK launched negotiations with India, the world’s fifth-largest economy with a GDP of $3.5 trillion and a growth rate of 6.8% in 2024, as reported by the International Monetary Fund’s World Economic Outlook, April 2025. India’s vast market of 1.4 billion consumers and rapidly expanding middle class presented a golden opportunity for UK exporters, particularly in sectors like whisky, automotive, and services. Meanwhile, India sought to bolster its export capabilities in textiles, apparel, and jewelry, while attracting foreign investment to modernize its infrastructure and technology sectors. The negotiations, however, were far from smooth, hampered by political instability in the UK, which saw four prime ministers—Boris Johnson (resigned July 2022), Liz Truss (resigned October 2022), Rishi Sunak (until July 2024), and Keir Starmer (from July 2024)—disrupting continuity. India’s 2024 general elections further slowed progress, as Prime Minister Narendra Modi’s government prioritized domestic reforms. Key sticking points included India’s high tariffs, such as 150% on whisky and over 100% on automobiles, and the UK’s reluctance to liberalize visa regimes for Indian professionals. Agricultural sensitivities, particularly India’s protective stance on dairy, and the UK’s push for robust intellectual property protections added further complexity, as noted in a House of Lords Library briefing on UK-India relations. The negotiations unfolded over 14 rounds, with significant interruptions in 2023 due to political transitions and unresolved issues. A pivotal moment came at the G20 Summit in Rio de Janeiro on November 18-19, 2024, where Modi and Starmer met and committed to resuming talks in early 2025, as outlined in a joint UK government statement. The urgency to finalize the deal was amplified by global trade disruptions caused by Trump’s tariffs, which imposed 10% duties on most imports and 20% on specific sectors, as reported by MarketScreener. These tariffs hit UK industries hard, with whisky facing 25% U.S. duties and automotive 15%, while India’s $150 billion U.S. export market, including textiles (20% tariffs), pharmaceuticals (10%), and steel (25%), was similarly threatened. By February 2025, negotiations were relaunched, and by April, 90% of the agreement was finalized, according to The Guardian. The final round in London, marked by a symbolic walk in Hyde Park between UK Business and Trade Secretary Jonathan Reynolds and Indian Commerce Minister Piyush Goyal, resolved outstanding issues, including whisky tariffs, car quotas, and visa mobility. The agreement was signed on May 6, 2025, in a ceremony attended by Starmer, Modi, Reynolds, and Goyal, symbolizing a new chapter in UK-India relations. The strategic imperative of the UK-India FTA is deeply rooted in the global trade environment reshaped by Trump’s protectionist policies. During his second term, Trump escalated tariffs, raising the average U.S. tariff rate from 2.5% to an estimated 27% between January and April 2025, the highest in over a century, according to Wikipedia. These included 145% tariffs on Chinese imports, 25% on Canadian and Mexican goods (with exemptions for USMCA-compliant products), and 20% on EU imports, as well as a 10% baseline tariff on all countries, effective April 5, 2025, under the International Emergency Economic Powers Act (IEEPA). For the UK, these tariffs translated into £2 billion in annual export losses, particularly in whisky and automotive sectors. India faced similar challenges, with U.S. tariffs threatening its $150 billion export market. The FTA thus serves as a countermeasure, enabling the UK to tap into India’s dynamic market, projected to become the world’s third-largest economy by 2030 with a GDP of $5.5 trillion, and India to diversify away from U.S. reliance (18% of its exports). The deal aligns with the UK’s post-Brexit strategy to reduce dependence on the EU (40% of trade) and U.S. (20%), and India’s goal to double bilateral trade to $100 billion by 2030, as stated by Goyal. The negotiation process was a delicate balancing act, requiring both nations to navigate economic, political, and cultural sensitivities. Launched in January 2022, the talks initially aimed to capitalize on mutual strengths, with the UK seeking tariff reductions on whisky, cars, lamb, salmon, cosmetics, and medical devices, and India prioritizing duty-free access for textiles, apparel, jewelry, and visa access for professionals. Early rounds in New Delhi were optimistic, but India’s high tariffs and the UK’s visa concerns quickly surfaced as major obstacles. In 2023, progress stalled due to India’s reluctance to liberalize agriculture, particularly dairy (10% of GDP), and the UK’s demand for extended copyright protections. Political upheaval in the UK, including Truss’s brief 49-day tenure, and India’s focus on 2024 elections further delayed talks. The G20 Summit in November 2024 reinvigorated efforts, with Modi and Starmer directing their teams to resolve issues by mid-2025. By April 2025, 90% of the deal was agreed, with compromises on whisky tariffs (phased reduction from 150% to 40% by 2035), car tariffs (from over 100% to 10% with quotas), and temporary business visas for 10,000 Indian professionals annually. The final agreement, finalized after round-the-clock negotiations, balanced tariff cuts with protections for sensitive sectors, though a bilateral investment treaty was deferred, as reported by Reuters. The UK-India FTA is a comprehensive agreement encompassing goods, services, investment, intellectual property, consumer protections, digital trade, and sustainability. Its tariff liberalization framework is central, enhancing market access for both nations. India will reduce tariffs on 90% of UK exports, with 85% becoming fully tariff-free by 2035, while the UK will liberalize tariffs on 99% of Indian exports, effective immediately for most goods. For the UK, whisky tariffs will be halved from 150% to 75% in 2025, dropping to 40% by 2035, boosting exports by £1 billion over five years and creating 1,200 jobs, according to the Scotch Whisky Association. Automobile tariffs will fall from over 100% to 10%, with quotas of 50,000 UK cars and 30,000 Indian cars annually, benefiting Jaguar Land Rover, which generates £5 billion from India. Other UK exports, including cosmetics (from 60% to 10%), lamb and salmon (from 30% to 0%), medical devices (from 20% to 5%), aerospace parts (from 15% to 0%), electrical machinery (from 10% to 0%), soft drinks, chocolate, biscuits, and apples (from 50% to 10%), will gain competitiveness in India’s $1 trillion consumer market. India’s exports, particularly textiles (25% of its $7.32 billion UK exports in 2024), apparel, gems and jewelry (15%), processed foods (10%), leather, and footwear, will benefit from duty-free access, with exports projected to reach $30 billion by 2029-30, as per the PIB. Key products include cotton garments ($2 billion), diamonds ($1 billion), mangoes ($100 million), spices ($200 million), and basmati rice. Services trade, a powerhouse for the UK (£500 billion in exports) and India ($250 billion), is a key focus. UK financial services, such as Standard Chartered, and technology, legal, and education providers gain enhanced access to India’s $300 billion services market. India’s IT, consulting, and healthcare services, led by firms like Infosys and Wipro, benefit from UK market access, with IT exports valued at $5 billion annually. Business mobility provisions allow 10,000 Indian professionals in IT, engineering, and healthcare to access temporary business visas (up to 2 years), facilitating intra-corporate transfers for firms like Tata, which employs 10,000 in the UK. However, India’s demand for permanent residency for 5,000 professionals annually remains unresolved due to UK immigration concerns. Investment commitments are significant, with the UK pledging £5-10 billion by 2030 in India’s infrastructure ($1.5 trillion market), clean energy, healthcare, and technology (AI, 5G). Indian firms, supporting 600,000 UK jobs, will invest £2 billion, creating 5,000 jobs in automotive (Tata), IT (Infosys), and steel (Tata Steel). Investor protections include dispute resolution mechanisms, though a bilateral investment treaty was deferred. Intellectual property and consumer protections are critical components. Copyright protections are extended to 70 years, benefiting the UK’s £115 billion creative industries (film, music, literature) and India’s Bollywood and software sectors. Enhanced IP enforcement protects UK pharmaceuticals (e.g., AstraZeneca) and Indian generics, fostering innovation. Trademarks and patents are streamlined, reducing counterfeiting in India’s $50 billion consumer market. Consumer protections include measures to shield UK consumers from spam texts and fraudulent calls from India, with a joint task force ensuring compliance. Fair trade practices, such as transparent pricing and product standards, bolster trust in cross-border e-commerce, valued at £10 billion annually. Sustainability is a priority, aligning with the UK’s 2050 net-zero target and India’s 2070 net-zero pledge. Cooperation in solar (India’s 100 GW target), wind, green hydrogen, and climate finance is supported by a £500 million UK-India green energy fund, targeting 10 GW of renewable capacity by 2030. However, the UK’s Carbon Border Adjustment Mechanism (CBAM), effective 2027, poses challenges, potentially increasing costs for Indian steel, cement, and aluminum exports by £500 million annually, as warned by the Global Trade Research Initiative. India seeks exemptions or compensatory tariffs, with talks planned for 2026. Digital trade and support for small and medium enterprises (SMEs) are integral to the FTA. Cross-border data flows and e-commerce facilitation support digital trade, valued at £15 billion. Digital customs procedures reduce paperwork by 30%, benefiting SMEs, which comprise 99% of UK firms and 90% of Indian exporters. Cybersecurity cooperation protects India’s $200 billion IT sector. Simplified trade rules and platforms like the UK-India Trade Portal enable SMEs to access markets, with 70% of FTA benefits accruing to small firms. Training programs for 10,000 SMEs annually target India’s textile and food sectors. The Department for Business and Trade (DBT) estimates SMEs will drive £3.4 billion of the projected £4.8 billion GDP boost for the UK by 2040. The agreement also includes a “double contribution convention,” exempting temporary Indian workers and their employers from UK national insurance contributions for three years, a move hailed by India but criticized by the UK’s Conservative opposition as a giveaway. The economic impacts of the FTA are transformative. For the UK, the DBT projects a £4.8 billion annual GDP boost by 2040 (0.2% of GDP), with wages rising by £2.2 billion, supporting 1.5 million households, particularly in Scotland, the North West, and London. Whisky exports will grow by £1 billion, creating 1,200 jobs, driven by India’s 500 million-liter whisky market. Automotive exports will increase by £500 million, benefiting Jaguar Land Rover and creating 800 jobs. Services, including finance, tech, and education, will grow by £1.5 billion, with UK universities targeting 50,000 Indian students annually (£2 billion in fees). Creative industries will see £200 million in film and music exports, with Bollywood co-productions. Cosmetics (£300 million), lamb and salmon (£150 million), and medical devices (£200 million) will see 15-20% export growth. The deal will create 10,000-20,000 jobs by 2030, with 40% in manufacturing, 30% in services, and 20% in creative industries. Strategically, it strengthens the UK’s Indo-Pacific presence, complementing deals with Australia, New Zealand, and CPTPP members. For India, duty-free access will boost exports from $7.32 billion (April-September 2024) to $30 billion by 2029-30, with textiles (15% annual growth), jewelry (10%), and food (12%) leading. Key products include cotton garments ($2 billion), diamonds ($1 billion), mangoes ($100 million), and spices ($200 million). The FTA will attract £5-10 billion in UK investments by 2030, targeting infrastructure, clean energy (100 GW solar), and tech (AI, 5G). Indian firms like Tata, Infosys, and Mahindra will invest £2 billion, creating 5,000 UK jobs. The deal sets a precedent for negotiations with the U.S., EU, and Australia, aligning with “Make in India.” Services exports, particularly IT, will grow by $5 billion, with 50,000 new jobs by 2030. The FTA will create 2-3 million jobs in textiles, apparel, and food, with 70% in rural areas, supporting 50 million workers. SMEs (40 million firms) will benefit from digital trade, with 500,000 small exporters targeting the UK by 2030. Challenges loom, particularly the UK’s CBAM, which could cost Indian exporters £500 million annually, impacting steel (£400 million), cement (£50 million), and aluminum (£50 million). India may retaliate with tariffs on UK whisky or cars, risking disputes, as warned by the Global Trade Research Initiative. Implementation barriers, including customs delays, non-tariff barriers (e.g., sanitary standards), and digital infrastructure gaps, could reduce benefits by 20%. SMEs need £100 million in training and financing. Global trade volatility, driven by U.S. tariffs, EU-India talks, and China’s dominance, poses a 10% risk of lower GDP gains. Political risks, including UK elections (2029) and India’s state elections (2026), could delay implementation, while India’s agricultural lobbies may resist dairy liberalization, limiting UK exports (£50 million potential). Stakeholder reactions reflect optimism and caution. Modi described the deal as “ambitious and mutually beneficial,” projecting 2 million jobs and $30 billion in exports, as quoted by US News. Starmer called it a “landmark deal” to “grow the economy and deliver for British people,” per the UK government. Mark Kent of the Scotch Whisky Association hailed it as “transformational,” projecting £1 billion in exports. Richard Masters of the Premier League welcomed its boost to creative industries (£50 million in broadcasts). Bill Winters of Standard Chartered noted £500 million in new deals. Markus Kessler of UPS highlighted a £100 million India hub facilitating £1 billion in trade. Richard Heald of the UK-India Business Council called it a “milestone” for 20,000 jobs. Analysts, however, warn of risks. The Global Trade Research Initiative flagged CBAM’s £500 million cost, urging exemptions. The UK’s Trade Policy Observatory praised the £4.8 billion GDP boost but noted non-tariff barriers could reduce benefits by 15%. The Centre for Economic and Business Research projected a 30% trade increase but cited a 10% risk from U.S. tariffs. The FTA has profound global implications. It deepens the 2030 Roadmap for India-UK relations, fostering cooperation in technology (£200 million AI and 5G fund), defense (£500 million in trade), and climate (£500 million green energy fund). It serves as a model for countering protectionism, inspiring India’s talks with the U.S. (2026), EU (2027), and Australia (2025), and the UK’s with Canada and Mexico. It positions India as a manufacturing hub, supporting “Make in India.” The deal mitigates U.S. tariff losses (£2 billion for the UK, $30 billion for India), leveraging India’s 1.4 billion consumers and the UK’s 67 million. Challenges include resolving CBAM, investing £500 million in customs and SMEs, and ensuring political stability. A 2028 review could add an investment treaty, dairy access, and deeper climate cooperation. In conclusion, the UK-India FTA, signed on May 6, 2025, is a diplomatic triumph, promising £25.5 billion in trade, millions of jobs, and global resilience. For the UK, it cements post-Brexit ambitions, countering U.S. tariffs with India’s dynamic market. For India, it accelerates global integration, supporting $1 trillion in exports. Challenges like CBAM and implementation require vigilance, but the deal offers a blueprint for cooperation in a protectionist era, redefining global trade for decades. Abhisht Chaturvedi is a Research Analyst at Insights International. His research interests include tech policy, media, and communications.

On May 8, 2025, India and Chile took a significant step toward deepening their economic ties by signing the Terms of Reference (ToR) for a Comprehensive Economic Partnership Agreement (CEPA). This milestone, as reported by NDTV Profit, marks a pivotal advancement in bilateral trade relations, building upon an existing Preferential Trade Agreement (PTA) and setting the stage for enhanced economic integration. The agreement, signed by Juan Angulo, Ambassador of Chile in India, and Vimal Anand, Joint Secretary in India’s Ministry of Commerce and Industry, signals a mutual commitment to expanding trade and cooperation across diverse sectors. With the first round of negotiations scheduled for May 26–30, 2025, in New Delhi, this development positions India and Chile to unlock new opportunities for growth, investment, and collaboration. This article explores the context, objectives, and potential impacts of the India-Chile CEPA, situating it within the broader framework of India’s trade strategy and global economic dynamics. Historical Context of India-Chile Trade Relations India and Chile have enjoyed cordial diplomatic and economic relations for decades, with trade serving as a cornerstone of their partnership. The foundation for this relationship was laid in January 2005 with the signing of a Framework Agreement on Economic Cooperation, followed by a Preferential Trade Agreement (PTA) in March 2006. The PTA, which became effective in August 2007, initially covered a modest 178 tariff lines, focusing primarily on goods such as agricultural products and engineering items. In September 2016, an expanded PTA was signed, increasing the coverage to 1,000 tariff lines, and it took effect on May 16, 2017. This expansion reflected a growing recognition of the potential for deeper economic engagement between the two nations. Bilateral trade between India and Chile has grown steadily over the years. According to government data, trade volume doubled from $1.8 billion in 2016–17 to $3.6 billion in 2024–25 (up to February 2025). However, India maintains a trade deficit with Chile, estimated at $2.5 billion in 2024–25, primarily due to Chile’s exports of copper ore, lithium, and other critical minerals. India’s exports to Chile are more diversified, encompassing motor vehicles, pharmaceuticals, textiles, chemicals, and auto components. The CEPA aims to address this trade imbalance while expanding cooperation into new areas such as digital services, micro, small, and medium enterprises (MSMEs), and critical minerals, which are vital for India’s sustainable energy transition. The Significance of the Terms of Reference The signing of the ToR on May 8, 2025, is a critical procedural step in the journey toward a CEPA. The ToR serves as a blueprint, outlining the purpose, structure, and scope of the negotiations. It establishes a shared framework for discussions, ensuring that both parties are aligned on objectives and priorities. According to the Ministry of Commerce and Industry, the CEPA aims to build upon the existing PTA by encompassing a broader range of sectors and fostering deeper economic integration. The agreement is expected to cover not only trade in goods but also services, investment promotion, intellectual property rights, and cooperation in emerging areas such as digital public infrastructure and space. The ToR was finalized following a Joint Study Group report signed on April 30, 2024, which underscored the potential for a comprehensive trade agreement to boost employment, facilitate investment, and enhance exports. The report highlighted Chile’s strategic importance as a gateway to Latin America and Antarctica, particularly for critical minerals like lithium, which are essential for India’s ambitions in electric vehicle (EV) manufacturing and renewable energy. The signing of the ToR was further reinforced during Chilean President Gabriel Boric Font’s state visit to India from April 1–5, 2025, where both nations’ leaders reaffirmed their commitment to a balanced, ambitious, and mutually beneficial agreement. India’s Strategic Trade Agenda The India-Chile CEPA is part of India’s broader strategy to diversify its trade partnerships and reduce reliance on traditional markets. In recent years, India has pursued an aggressive free trade agreement (FTA) agenda, signing pacts with countries such as the United Arab Emirates (UAE), Australia, and the United Kingdom (UK). The CEPA with Chile marks India’s first comprehensive trade agreement with a Latin American nation, signaling a shift toward deeper engagement with the Latin America and Caribbean (LAC) region. Union Commerce Minister Piyush Goyal, speaking at the 10th CII India-Latin America Caribbean Conclave in March 2025, emphasized the need for expedited decision-making in trade negotiations to capitalize on untapped potential in the LAC region, which currently accounts for $45 billion in bilateral trade with India. India’s focus on FTAs reflects a response to global economic challenges, including geopolitical tensions, supply chain disruptions, and the rise of protectionist policies. The global trade environment has become increasingly uncertain, with events such as U.S. tariffs under President Donald Trump in early 2025 adding complexity to international commerce. By forging bilateral and regional trade agreements, India aims to secure preferential market access, diversify its export basket, and strengthen supply chain resilience. The CEPA with Chile aligns with this strategy, offering India an opportunity to tap into Latin America’s resource-rich markets while promoting its own labor-intensive and technology Key Sectors in the India-Chile CEPA The India-Chile CEPA is designed to be comprehensive, covering a wide array of sectors that reflect the economic priorities of both nations. Key areas of focus include: Critical Minerals: Chile is a global leader in the production of copper and lithium, both of which are critical for India’s energy transition and industrial growth. Lithium, in particular, is a vital component in EV batteries, energy storage systems, and electronics. India’s push to secure lithium supplies is evident in its non-disclosure agreement with Chile’s state-run company ENAMI, aimed at ensuring a stable supply chain for this strategic mineral. The CEPA is expected to facilitate investment and cooperation in critical minerals, supporting India’s goal of reducing its carbon footprint and achieving net-zero emissions by 2070. Agriculture: Agricultural trade has been a cornerstone of India-Chile relations, with India exporting spices, fruits, vegetables, and maize, and importing walnuts, chemical wood pulp, and other products from Chile. The CEPA aims to expand market access for Indian agricultural goods, particularly maize, bananas, groundnuts, and oil cakes, while addressing non-tariff barriers that have historically limited trade. Chile’s proximity to Peru, Bolivia, and Argentina also positions it as a gateway for India to access the broader South American agricultural market. Digital Services and Public Infrastructure: The inclusion of digital services in the CEPA reflects India’s growing emphasis on its digital economy, which is projected to contribute $1 trillion to GDP by 2025. Areas such as digital public infrastructure, cybersecurity, and artificial intelligence are likely to be prioritized, aligning with India’s expertise in IT and IT-enabled services (ITeS). Chile, with its advanced digital infrastructure, offers opportunities for collaboration in fintech, edtech, and e-governance, fostering innovation and cross-border investment. MSMEs: Micro, small, and medium enterprises are a backbone of India’s economy, contributing significantly to exports and employment. The CEPA seeks to promote MSME cooperation by facilitating access to markets, technology, and financing. This is particularly relevant for labor-intensive sectors such as textiles, leather goods, and handicrafts, where Indian MSMEs can leverage Chile’s trade networks to expand their global footprint. Investment Promotion and Cooperation: The CEPA will include provisions for investment promotion, encouraging bilateral investments in sectors such as railways, space, and renewable energy. India’s expertise in railway infrastructure and space technology, coupled with Chile’s strategic location and resources, creates opportunities for joint ventures and technology transfers. The agreement is also expected to address intellectual property rights, trade facilitation, and customs cooperation to create a conducive environment for investment. Services Trade: While goods trade has dominated India-Chile relations, the CEPA aims to unlock opportunities in services, including professional services, education, and healthcare. India’s strength in IT/ITeS and professional services can complement Chile’s growing service sector, fostering mutual growth and innovation Economic Implications for India The CEPA with Chile holds significant economic implications for India, particularly in the context of its export-driven growth strategy. India’s merchandise exports in FY23 stood at $450.4 billion, with services exports contributing an additional $322.7 billion. By expanding market access to Chile, India can boost exports of labor-intensive goods such as textiles, leather products, and auto components, which are critical for job creation. The elimination or reduction of tariffs on these goods under the CEPA will enhance their competitiveness in the Chilean market, potentially reducing India’s trade deficit. Moreover, the CEPA aligns with India’s ambition to diversify its export markets. While traditional markets like the United States, European Union, and China remain significant, the LAC region offers untapped potential. Chile, as the fifth-largest trading partner for India in the LAC region, serves as a strategic entry point to South America. The CEPA is expected to facilitate greater market access for Indian goods and services, while also attracting Chilean investments in sectors such as renewable energy and technology. The focus on critical minerals is particularly strategic for India. As the country transitions to sustainable energy sources, securing a stable supply of lithium and copper is crucial. The CEPA, combined with India’s agreement with ENAMI, positions India to strengthen its supply chain for EV batteries and renewable energy infrastructure. This is especially relevant as India aims to increase its EV penetration to 30% by 2030, supported by government initiatives such as the Production Linked Incentive (PLI) scheme for battery manufacturing. Economic Implications for Chile For Chile, the CEPA offers an opportunity to deepen its economic engagement with India, one of the world’s fastest-growing economies. India’s large and growing consumer market provides a significant opportunity for Chilean exporters, particularly in agriculture and minerals. The CEPA is expected to enhance market access for Chilean products such as walnuts, copper ore, and chemical wood pulp, while also fostering cooperation in emerging sectors like digital services and space. Chile’s strategic location as a gateway to Antarctica also holds geopolitical and economic significance. India, with its growing interest in polar research and resource exploration, can leverage Chile’s proximity to Antarctica for scientific and commercial collaboration. The CEPA is likely to include provisions for joint research and investment in polar and space technologies, aligning with India’s aspirations to expand its presence in global scientific communities. Furthermore, the CEPA will strengthen Chile’s position as a trade hub in the LAC region. By deepening ties with India, Chile can diversify its trade partnerships beyond traditional markets like the United States, China, and the European Union. The agreement is also expected to attract Indian investments in Chile’s infrastructure, mining, and renewable energy sectors, creating new avenues for economic growth and job creation. Challenges and Considerations While the India-Chile CEPA holds immense potential, several challenges must be addressed to ensure its success. First, the trade deficit in favor of Chile requires careful negotiation to ensure balanced benefits. India will likely push for greater market access for its labor-intensive goods and services, while Chile may seek concessions in agriculture and minerals. Striking a balance between these priorities will be critical to achieving a mutually beneficial agreement. Second, non-tariff barriers (NTBs) such as sanitary and phytosanitary measures, technical standards, and customs procedures could pose challenges. Both countries must work to harmonize regulations and streamline trade processes to ensure the free flow of goods and services. The inclusion of trade facilitation and customs cooperation in the CEPA is a step in this direction, but effective implementation will be key. Third, geopolitical and economic uncertainties could impact the negotiations. The global trade environment remains volatile, with issues such as U.S. tariffs, supply chain disruptions, and regional conflicts affecting international commerce. India and Chile must navigate these challenges while ensuring that the CEPA aligns with their respective economic priorities and global commitments, such as those under the World Trade Organization (WTO). Finally, stakeholder consultations will play a crucial role in shaping the CEPA. In India, industries such as textiles, pharmaceuticals, and IT/ITeS will advocate for greater market access, while domestic sectors like agriculture may raise concerns about competition from Chilean imports. Similarly, Chilean industries may seek protections for sensitive sectors. Engaging MSMEs, industry associations, and civil society in the negotiation process will be essential to building consensus and ensuring inclusive growth. Comparison with Other Indian FTAs The India-Chile CEPA can be contextualized within India’s broader FTA landscape. India has signed 13 FTAs as of 2025, including agreements with the UAE, Australia, and the UK. The India-UK FTA, signed on May 6, 2025, is a notable example, offering zero-duty access for 99% of Indian exports and easing mobility for Indian professionals. Similarly, the India-UAE CEPA, completed in a record 88 days in 2022, has boosted bilateral trade to over $50 billion. These agreements highlight India’s shift toward comprehensive trade pacts that cover goods, services, and investment, a model that the India-Chile CEPA is likely to follow. Unlike the India-UK FTA, which focuses heavily on services and industrial goods, the India-Chile CEPA emphasizes critical minerals and agriculture, reflecting the complementary strengths of the two economies. Additionally, the CEPA’s focus on digital services and MSMEs aligns with India’s digital economy ambitions, similar to provisions in the India-Australia Economic Cooperation and Trade Agreement (ECTA). By learning from these agreements, India and Chile can design a CEPA that maximizes mutual benefits while addressing sector-specific challenges. Global and Regional Context The India-Chile CEPA must be viewed in the context of global trade trends. The rise of bilateral and regional trade agreements reflects a shift away from multilateral frameworks like the WTO, which have faced challenges in achieving consensus. As noted by Indian Finance Minister Nirmala Sitharaman, bilateral agreements are gaining prominence due to geopolitical tensions and supply chain vulnerabilities exposed by the COVID-19 pandemic. The CEPA with Chile aligns with this trend, offering India a foothold in the LAC region while diversifying its trade partnerships. Regionally, the CEPA strengthens India’s engagement with the LAC region, where it is also negotiating FTAs with Peru and other countries. Chile’s membership in the Pacific Alliance, a trade bloc that includes Mexico, Peru, and Colombia, further enhances its strategic importance. By deepening ties with Chile, India can position itself as a key player in Latin American trade networks, complementing its existing agreements with countries like the UAE and Australia. Future Outlook and Negotiations The first round of CEPA negotiations, scheduled for May 26–30, 2025, in New Delhi, will set the tone for the agreement’s scope and timeline. Both countries have expressed a shared vision for a balanced and ambitious agreement, but the complexity of covering goods, services, and investment may require multiple rounds of talks. The experience of India’s negotiations with the UK and EU, which spanned several years, suggests that patience and flexibility will be key. Key priorities for the negotiations include tariff liberalization, non-tariff barrier reduction, and investment promotion. India will likely seek greater market access for its labor-intensive goods and services, while Chile may prioritize agriculture, minerals, and digital cooperation. The inclusion of emerging areas like space and polar research could also set a precedent for innovative trade agreements that go beyond traditional frameworks. The CEPA’s success will depend on effective implementation and stakeholder engagement. Both countries must establish robust mechanisms for monitoring and resolving disputes, ensuring that the agreement delivers tangible benefits. Regular high-level dialogues, such as those between Prime Minister Narendra Modi and President Gabriel Boric Font, will be crucial for maintaining momentum and addressing challenges. Conclusion The signing of the Terms of Reference for the India-Chile Comprehensive Economic Partnership Agreement on May 8, 2025, marks a significant milestone in bilateral trade relations. By building upon the existing Preferential Trade Agreement and expanding cooperation into new areas like critical minerals, digital services, and MSMEs, the CEPA promises to unlock new opportunities for growth and innovation. For India, the agreement aligns with its broader strategy of diversifying trade partnerships, securing critical resources, and boosting exports. For Chile, it offers access to one of the world’s largest and fastest-growing markets, while strengthening its position as a trade hub in Latin America. As negotiations progress, both countries must navigate challenges such as trade imbalances, non-tariff barriers, and global economic uncertainties. By leveraging their complementary strengths and shared vision, India and Chile can create a model for balanced and inclusive trade agreements. The CEPA not only strengthens bilateral ties but also positions both nations as key players in the evolving global trade landscape, fostering economic integration and mutual prosperity. Abhisht Chaturvedi is a Research Analyst at Insights International. His research interests include tech policy, media, and communications.

By Abhisht Chaturvedi Indian PM Narendra Modi Meets New Zealand PM Christopher Luxon On March 16, 2025, India and New Zealand announced the resumption of discussions towards Free Trade Agreement (FTA) negotiations, breathing new life into a process that had languished since 2015. This development, unveiled during New Zealand Prime Minister Christopher Luxon’s visit to New Delhi, marks a pivotal moment in bilateral relations. With trade currently valued at $1.7 billion (2023-24) and a remarkable 30% growth in 2024, both nations are poised to leverage this FTA to achieve a tenfold increase in trade over the next decade. The ambitious 60-day timeline set for concluding the deal underscores the urgency and optimism surrounding this partnership. This article delves into the history, stakes, challenges, and broader implications of the India-New Zealand FTA discussions as of March 21, 2025. The journey toward an India-New Zealand FTA began in April 2010 with the launch of negotiations for a Comprehensive Economic Cooperation Agreement (CECA). The CECA aimed to enhance trade in goods, services, and investment, reflecting the complementary strengths of both economies. India, with its burgeoning pharmaceutical and IT sectors, sought greater market access in New Zealand, while New Zealand, a global leader in dairy and agricultural exports, eyed India’s vast consumer base. However, after nine rounds of talks, negotiations stalled in 2015. The primary sticking point was India’s reluctance to lower tariffs on dairy and agricultural products, a sector critical to New Zealand’s economy but equally sensitive for India’s millions of small-scale farmers. New Zealand’s average import tariff of 2.3% starkly contrasted with India’s 17.8%, highlighting a structural disparity that complicated concessions. Additional issues, such as differing regulatory standards and limited political momentum, further delayed progress. For nearly a decade, the FTA remained on the back burner, overshadowed by India’s trade pacts with Japan, South Korea, and Australia, and New Zealand’s focus on agreements with China and the European Union. Yet, shifting global dynamics—rising protectionism, supply chain disruptions, and the need for diversification—prompted both nations to revisit this unfinished agenda in 2025. The catalyst for this revival was Luxon’s five-day visit to India from March 16-20, 2025. Meeting with Indian Prime Minister Narendra Modi and Commerce Minister Piyush Goyal, Luxon emphasized the FTA as a “game-changer” for bilateral ties. On March 18, he boldly proposed concluding the agreement within 60 days, a timeline Goyal echoed with equal enthusiasm, citing India’s rapid 90-day FTA with the UAE as precedent. Formal negotiations are slated to begin in April 2025, setting the stage for an intensive diplomatic sprint. This renewed push aligns with broader economic strategies. India, facing potential U.S. tariffs under a second Trump administration, is accelerating trade diversification. New Zealand, meanwhile, seeks to reduce reliance on China, its largest trading partner, amid geopolitical tensions. The FTA announcement coincided with other bilateral milestones, including a codeshare agreement between Air India and Air New Zealand and negotiations on skilled worker mobility, signaling a holistic strengthening of ties. Bilateral trade between India and New Zealand, though modest at $1.7 billion in 2023-24, has shown resilience. India exports pharmaceuticals, textiles, and IT services, while New Zealand supplies dairy, wool, fruits, and timber. The 30% trade surge in 2024 reflects growing demand, yet untapped potential remains vast. The FTA’s goal of a tenfold increase—to approximately $17 billion by 2035—is ambitious but grounded in complementary strengths. For New Zealand, India’s 1.4 billion consumers offer a lucrative market for dairy, meat, and horticultural products like apples and kiwis. Dairy, accounting for a significant portion of New Zealand’s $100 billion export economy, is a cornerstone of its negotiating stance. In return, New Zealand could ease visa restrictions and market access for Indian IT professionals and pharmaceutical firms, sectors where India excels globally. India stands to gain from New Zealand’s expertise in agriculture, renewable energy, and education. Enhanced access to wool and timber could bolster India’s textile and construction industries, while collaboration in green technology aligns with India’s 2070 net-zero target. Tourism, too, is a promising frontier—New Zealand welcomed 87,000 Indian visitors in 2023, a 23% rise, with millions more eyeing it as a top destination. Sectoral Focus: Key Areas of Negotiation Agriculture and Dairy:  New Zealand’s push for dairy access remains the FTA’s most contentious issue. India’s tariffs on dairy products (30-60%) protect its 80 million dairy farmers, a politically sensitive constituency. New Zealand, unwilling to exclude dairy, argues for phased tariff reductions. A potential compromise could involve quotas or niche dairy products less threatening to Indian producers. Services:  India seeks greater mobility for its IT and pharma professionals, leveraging New Zealand’s demand for skilled labor. A parallel negotiation on professional mobility, announced during Luxon’s visit, could facilitate this, though New Zealand may tie concessions to trade-offs in goods. Manufacturing and Technology:  India’s pharmaceutical exports could benefit from streamlined regulatory approvals in New Zealand, while joint ventures in aerospace and renewable energy—sectors Luxon highlighted—offer innovation opportunities. Tourism and Connectivity:  The Air India-Air New Zealand codeshare, spanning 16 routes, and talks of a Delhi-Auckland direct flight by 2028, aim to boost tourism and business travel, reinforcing economic integration. Challenges: Navigating Sensitivities Despite the optimism, significant hurdles loom. The dairy impasse exemplifies the tariff disparity challenge. India’s protective agricultural policies, rooted in food security and rural livelihoods, clash with New Zealand’s export-driven model. Goyal’s assertion that “no FTA is negotiated with a gun to anyone’s head” underscores India’s insistence on safeguarding domestic interests, a stance honed in talks with the EU and UK. Regulatory alignment poses another obstacle. Differences in sanitary and phytosanitary standards, intellectual property rights, and environmental regulations could prolong negotiations beyond the 60-day target. Moreover, New Zealand’s small market size (5 million people) limits its appeal for India compared to larger partners like the EU, potentially tempering India’s concessions. Political will, while strong, faces domestic pressures. In India, farmer protests against trade liberalization could resurface, while New Zealand’s dairy lobby will resist any deal sidelining its interests. The compressed timeline adds further complexity—experts question whether a comprehensive FTA, encompassing goods, services, and investments, can be finalized so swiftly without compromising depth. Strategic Significance: Beyond Economics The FTA transcends trade, reflecting broader geopolitical currents. For India, it’s a plank in its Indo-Pacific strategy, countering China’s regional influence alongside pacts like the Quad (India, U.S., Japan, Australia). New Zealand, a Pacific nation with a low-tariff regime, strengthens India’s outreach to like-minded democracies. Amid global trade tensions—exacerbated by U.S. protectionism under Trump—the FTA offers resilience. India’s recent FTAs with Australia and the UAE, and ongoing talks with the EU and UK, signal a proactive pivot. New Zealand, diversifying from China (which absorbs 30% of its exports), gains a stable partner in India, the world’s fifth-largest economy. Defense and security ties also deepen. Joint military exercises and potential cooperation in critical minerals align with shared interests in a free Indo-Pacific. People-to-people links—11% of Auckland’s population is of Indian descent—further cement this partnership, fostering cultural and economic bridges. If successful, the India-New Zealand FTA could set a precedent for agile, modern trade agreements. The 60-day timeline, while ambitious, reflects a pragmatic approach—building on a decade of groundwork rather than starting anew. A phased implementation, prioritizing services and select goods, could bypass immediate dairy gridlock, with tougher issues deferred to later rounds. Economic projections are promising. A tenfold trade increase would elevate bilateral flows to levels rivaling New Zealand’s trade with larger partners, while India gains a foothold in the Pacific. Supply chain integration, especially in pharmaceuticals and agriculture, could buffer both nations against global shocks. Yet, realism vacillations loom. Failure to meet the deadline risks denting momentum, though partial agreements—on services or tourism—could sustain progress. As of March 21, 2025, the clock is ticking, with the first round of talks imminent in April. Success hinges on flexibility, trust, and a shared vision for prosperity. The India-New Zealand FTA discussions, relaunched in March 2025, embody a confluence of economic ambition and strategic foresight. Bridging a decade-long gap, this partnership promises to unlock vast potential—marrying India’s scale with New Zealand’s efficiency. Challenges, notably dairy and tariffs, test negotiators’ resolve, but the stakes—economic growth, regional stability, and global relevance—justify the effort. As the April 2025 talks near, the world watches whether this 60-day sprint yields a landmark deal or a foundation for future gains. Either way, the India-New Zealand collaboration is poised to redefine bilateral possibilities. Abhisht Chaturvedi is a Research Analyst at Insights International. His research interests include tech policy, media, and communications.

By Abhisht Chaturvedi (Source: Wikimedia Commons) India’s port infrastructure has undergone significant transformation over the past few years, positioning the country as a global maritime hub. The government’s focus on modernizing port facilities, increasing capacity, and improving connectivity has driven remarkable progress. With initiatives like the Sagarmala Project, which aims to promote port-led development, India is addressing key logistical challenges, reducing transit times, and improving trade efficiency. India boasts a total of 12 major ports and over 200 non-major ports  that handle cargo and passenger traffic. Out of these, 13 ports are classified as deep-sea ports, capable of handling large container vessels with deep draughts. Some of the significant deep-sea ports include Mundra, Jawaharlal Nehru Port Trust (JNPT), Chennai Port, Visakhapatnam Port, and Krishnapatnam Port. These deep-sea ports provide India with a strategic advantage, allowing the country to manage larger cargo volumes and larger vessels, further enhancing trade competitiveness. Strategic Importance India’s strategic location along key international shipping routes provides a natural advantage. The expansion of deep-draught ports capable of handling larger vessels, including ultra-large container ships, is positioning India to become a pivotal player in global trade. Ports like Mundra, JNPT, and Ennore Port near Chennai are now capable of handling Post-Panamax and Suezmax vessels, increasing India’s ability to handle large-scale imports and exports. The development of coastal economic zones (CEZs) around ports is further fostering regional growth and creating new economic opportunities. Projects like the Dedicated Freight Corridors (DFCs), which connect major ports to industrial hubs, are enhancing road, rail, and inland waterway links to ports, significantly reducing logistics costs and transit times. The Sagarmala Project is one of the Indian government’s flagship initiatives, launched with the goal of transforming the country's maritime sector through port-led development. It focuses on modernizing existing ports and developing new ones to drive economic growth. The project aims to leverage India’s 7,500 km coastline by improving the efficiency of ports and enabling the seamless movement of goods. In addition to port modernization, Sagarmala emphasizes enhancing hinterland connectivity, promoting coastal shipping, and creating new coastal economic zones (CEZs) that spur industrial growth. The project spans the entire Indian coastline, with key development plans for both the eastern and western coasts. Some of the most strategic locations include the Jawaharlal Nehru Port (Nhava Sheva) in Maharashtra, Chennai Port, and the Paradeep Port in Odisha, each crucial to reducing logistics costs and transit times for domestic and international trade. By 2035, the Sagarmala initiative aims to create 14 CEZs, reduce logistics costs by 10-12%, and generate millions of new jobs. International cooperation is another important aspect of India’s port infrastructure development. Strategic partnerships with countries such as Australia, Japan, and the UAE have helped India gain access to best practices, technology, and expertise in port management. These collaborations not only improve India’s domestic port infrastructure but also extend its influence in the international maritime sector. A notable example is India’s development of the Chabahar Port in Iran, which gives India access to vital trade routes bypassing Pakistan, opening up a strategic route to Afghanistan and Central Asia. This project illustrates India’s commitment to securing its trade routes and strengthening its regional influence. Rise of Private Players in Indian Port Management One of the major shifts in the port infrastructure landscape is the increased participation of private players such as Adani Ports and DP World. These companies have played a crucial role in expanding port capacities, introducing cutting-edge technologies, and ensuring sustainable practices. Adani Ports, in particular, has made massive investments in both domestic and international markets, including its latest project in Da Nang, Vietnam, which was recently approved by Vietnamese authorities, highlighting India’s growing influence in the global maritime sector. This new project reflects Adani’s ambition to expand internationally, but the port is still in its early development stages and is not yet operational. Adani Ports has rapidly expanded its portfolio in India as well. It operates 13 ports and terminals in India, accounting for about 24% of the country’s total port capacity. This includes critical facilities such as Mundra Port , India’s largest commercial port located in Gujarat, which has become a vital node in the country’s trade network. The company’s investments have also extended into sustainable port practices, where Adani Ports is integrating renewable energy solutions and green technologies, setting a benchmark for environmental sustainability in the sector. Technology Integration The integration of technology in Indian ports has been a game-changer. Automation, artificial intelligence (AI), and advanced cargo handling systems have streamlined operations, reducing turnaround times and boosting efficiency. DP World , with its AI-driven systems, has revolutionized vessel management, allowing Indian ports to compete with global standards. These advancements are particularly critical in light of the increasing global competition, especially with China’s Belt and Road Initiative. DP World has been instrumental in reshaping port operations through the use of automated container handling systems and predictive maintenance technologies, significantly reducing vessel waiting times and improving overall efficiency at key Indian ports. Sustainability Push Sustainability has emerged as a key priority in India’s port infrastructure strategy. The government, along with private players, is increasingly focusing on the adoption of green technologies. Shore power infrastructure, which allows ships to plug into the local grid while at berth, is being introduced to reduce carbon emissions. Ports like Mundra, JNPT, and Visakhapatnam are leading in the adoption of solar and wind energy solutions, incorporating green practices to minimize their environmental impact. This push for sustainability aligns with global environmental goals and enhances India’s reputation as a responsible player in the global maritime sector. Challenges Despite these advancements, India’s port infrastructure faces some challenges. Connectivity issues, particularly between ports and the hinterland, continue to hamper the full potential of India’s port infrastructure. Inadequate road and rail links lead to congestion, causing delays in cargo movement. The government is actively addressing these concerns through various infrastructure projects aimed at improving last-mile connectivity and ensuring seamless cargo movement. Additionally, regulatory hurdles and bureaucratic inefficiencies persist, slowing down the pace of development. Reforms are needed to streamline these processes and attract more investment, both domestic and international. Moreover, the country faces stiff competition from China , which has invested heavily in its own maritime infrastructure through the Belt and Road Initiative. India must continue to modernize its ports, enhance connectivity, and adopt new technologies to stay competitive on the global stage. Abhisht Chaturvedi is a Research Analyst at Insights International. His research interests include tech policy, media, and communications.

Author: Abhisht Chaturvedi Sri Lanka, an island nation that once stood as a beacon of economic growth in South Asia, has been navigating one of the most challenging periods in its modern history. The severe economic crisis, which culminated in the country's first-ever default on its foreign debt in 2022, has deeply impacted every facet of life for the Sri Lankan people. The crisis has been marked by acute shortages of essentials such as food, medicine, and fuel, causing widespread public discontent and political instability. Against this backdrop, the recent debt restructuring agreement reached in Paris on June 26, 2024, is being hailed as a pivotal moment in Sri Lanka’s journey towards economic recovery. The economic crisis in Sri Lanka was the result of a confluence of factors, including years of economic mismanagement, excessive borrowing, and the devastating impact of the COVID-19 pandemic. As tourism, one of the country's major sources of foreign exchange, collapsed during the pandemic, Sri Lanka’s foreign reserves dwindled rapidly. This was compounded by poor fiscal policies and a series of ill-advised economic decisions by successive governments, which included the adoption of organic farming overnight, leading to a drastic drop in agricultural output. The country's inability to service its mounting debt obligations became apparent, and in April 2022, Sri Lanka announced that it would default on its foreign debt, sparking the current economic crisis. The debt restructuring agreement reached in Paris, which covers $5.8 billion of Sri Lanka’s debt, is seen as a significant step forward in addressing the country’s financial woes. The agreement was facilitated by a creditor committee that includes Japan, South Korea, Australia, the United States, and France, with India playing a crucial role as a nonmember creditor. The deal allows Sri Lanka to postpone all bilateral loan payments to foreign countries until 2028, providing the government with much-needed fiscal space to focus on economic recovery. In addition to this, the Export-Import Bank of China signed a separate agreement with Sri Lanka, restructuring $4.2 billion of debt. These agreements are expected to pave the way for the resumption of many stalled infrastructure projects across the country, which had been put on hold due to the lack of funds. President Ranil Wickremesinghe, in a national address, described the debt restructuring agreement as a "significant milestone" in Sri Lanka’s recent history, emphasizing that this deal is crucial for the country's efforts to regain economic stability. The president’s statement reflects the government’s relief at securing this agreement, which comes after months of difficult negotiations and uncertainty. The restructuring deal is expected to restore some level of confidence among international investors and rating agencies, which had downgraded Sri Lanka’s credit rating to selective default following its inability to meet debt obligations. However, while the agreement with official bilateral creditors marks a critical achievement, the road to full economic recovery remains long and fraught with challenges. One of the most pressing issues that Sri Lanka now faces is reaching a similar agreement with its commercial creditors, who hold a significant portion of the country’s external debt. Negotiations with these creditors are expected to be complex and potentially contentious, as commercial creditors often have different priorities compared to bilateral or multilateral lenders. Murtaza Jafferjee, chair of the Colombo-based Advocata Institute, noted that while the government has completed half the job with this agreement, the remaining task of securing a deal with commercial creditors is essential for the country to fully exit bankruptcy status. He suggested that an agreement could be reached within the next month, which would likely lead to the removal of Sri Lanka from selective default status by credit rating agencies. Such a development would be crucial in attracting foreign investment, which is desperately needed to kickstart the country's economy. The economic crisis has had profound political ramifications in Sri Lanka, with widespread public discontent leading to the ousting of former President Gotabaya Rajapaksa in 2022. Ranil Wickremesinghe, who assumed the presidency amidst this turmoil, has faced a daunting task in trying to stabilize the nation. With national elections scheduled for later in the year, the successful negotiation of the debt restructuring deal could serve as a significant political victory for Wickremesinghe. However, as Imran Furkan, CEO of Tresync, a consultancy firm focused on the Asia-Pacific region, pointed out, the average Sri Lankan voter may not be fully swayed by this achievement. The high cost of living and the erosion of purchasing power have created a sense of disillusionment among the public, many of whom are more concerned with immediate economic hardships than with long-term financial agreements. The president’s ability to translate this deal into tangible economic improvements will likely play a critical role in determining the outcome of the upcoming elections. Beyond the political sphere, the debt restructuring agreement has important implications for Sri Lanka’s relations with its key international partners. The involvement of major global powers such as Japan, the United States, and India in the restructuring process highlights the geopolitical significance of Sri Lanka’s economic stability. For China, which has been one of Sri Lanka’s largest creditors, the restructuring deal marks a delicate balancing act between protecting its financial interests and maintaining its strategic influence in the region. The $4.2 billion agreement signed with the Export-Import Bank of China indicates Beijing’s willingness to support Sri Lanka through its financial difficulties, though the terms of this deal are likely to be scrutinized by other stakeholders. The restructuring of Chinese debt, in particular, has been a focal point of international attention, given the broader concerns about the role of Chinese lending in developing countries and the potential for "debt trap" diplomacy. The restructuring agreements also come with expectations of significant economic reforms within Sri Lanka. For the country to regain the trust of its creditors and attract new investment, it must implement a range of policy measures aimed at improving fiscal discipline, enhancing transparency, and fostering economic growth. These reforms are likely to include measures to widen the tax base, reduce public sector inefficiency, and improve the business environment to encourage private sector investment. The Sri Lankan government has already initiated some reforms, but the success of these efforts will depend on the political will to see them through and the ability to manage public discontent during the transition period. One of the immediate benefits of the debt restructuring deal is the potential for the resumption of key infrastructure projects that had been stalled due to the lack of funds. Projects such as the expansion of Katunayake Airport and the construction of the Central Expressway are crucial for the country’s long-term economic development. The completion of these projects is expected to enhance Sri Lanka’s connectivity and logistical capabilities, thereby boosting trade, tourism, and investment. However, the government must ensure that these projects are managed efficiently and transparently to avoid the pitfalls that contributed to the current crisis in the first place. Despite the optimism surrounding the debt restructuring agreement, the challenges ahead for Sri Lanka remain daunting. The country’s economy is still fragile, with inflation remaining high and the currency under pressure. The government’s ability to implement economic reforms and maintain social stability will be critical in determining the success of the recovery process. Moreover, the global economic environment is uncertain, with potential risks such as rising interest rates, geopolitical tensions, and climate-related disruptions that could further complicate Sri Lanka’s path to recovery. The international community has a vested interest in ensuring that Sri Lanka’s recovery is successful, not just for the sake of the Sri Lankan people, but also because of the broader implications for global financial stability and regional security. The involvement of international financial institutions such as the International Monetary Fund (IMF) and the World Bank in supporting Sri Lanka’s recovery efforts will be crucial. These institutions can provide not only financial assistance but also technical expertise and policy guidance to help Sri Lanka navigate its way out of the crisis. Given the current political landscape in Sri Lanka, the outcome of the upcoming elections could significantly impact the nation's foreign relations, particularly with India and China. A win for President Ranil Wickremesinghe or any party aligned with his policies would likely benefit India. Wickremesinghe has historically been more inclined towards fostering strong ties with India, focusing on economic cooperation, regional security, and balancing relations with China. His administration’s role in securing the recent debt restructuring agreement, where India played a crucial role, underscores this alignment. Therefore, his continued leadership or a similar moderate, pro-Western, and pro-India leadership would likely strengthen Indo-Sri Lankan relations. On the other hand, a win for factions or parties associated with the Rajapaksa family would likely benefit China. The Rajapaksas have maintained close ties with Beijing, which led to significant Chinese investments in Sri Lanka during their time in power. China has been a major creditor and strategic partner for Sri Lanka under the Rajapaksas, and their return to power could see a continuation or deepening of this relationship. The recent restructuring of $4.2 billion in Chinese debt also reflects Beijing’s ongoing influence in the country. Abhisht Chaturvedi is a Research Analyst at Insights International. His research interests include tech policy, media, and communications.

Abstract This article examines maritime chokepoints and their severe impact on the economies and how they can squeeze out margins from businesses. Various occasions have pushed for better preparedness in terms of infrastructure, maintaining secure routes, alternative trade routes, comprehensive financial planning, and adopting tech-based solutions to make the global supply chain more robust and resilient. Here we will also draw the multiple connections of factors such as FTA, tariffs, carbon tariffs, ESG, etc, and their contribution to international trade.     Introduction or Situation Maritime trade is the lifeline of the global supply chain. Therefore, maritime chokepoints can cause significant disruption to the global supply chain. Choke points are geographically narrow strategic passages that connect two larger areas. Over the years new chokepoints have emerged worldwide, however, this article will keep its focus on six of them. These choke points have the potential to cause disruptions to the global supply chain, which is why they are strategically crucial for countries despite being surrounded by geopolitical and structural risks .   Disruption to these choke points can severely impact the inflation rate which can lead to significant change in the commodity prices therefore leading to economic imbalance. However, the effects of it were felt worldwide with COVID-19, the 2021 Suez Canal blockage, Russia-Ukraine war. Cargo Ships would need to travel thousands of miles from alternate trade routes making it economically unfeasible, which was observed in the case of the  2021 Suez Canal blockage . It was estimated that the blockage could cost global trade between  6 to 10 billion a week and reduce annual trade growth by 0.2 to 0.4 percent. Before the blockage shipping costs had already doubled due to Covid-19 and the blockage of 6 days’ cost approximately dollars’ worth of trade loss had occurred, essential goods like oil and gas were trapped, pushing up prices even further. The blockage also affected the trade of apparel such as footwear as the U.S. imports this apparel from  India  and Southeast Asia via the Suez Canal. Hence, blockages in any of these choke points can have disastrous consequences for the global economy. Strait of Hormuz This strait constitutes a major trade route for global oil trade, around  20-30%  of it. With no other alternative routes that pass through the Persian Gulf which makes it one of the world’s most vulnerable and precarious choke points. This chokepoint remains heightened by geopolitical tensions between Iran and the US which have been bubbling over a decade and leading to serious concerns about global oil trade. The former U.S. president Donald Trump had blamed Iran for attacking U.S. oil tankers in 2019, but the Iranian military has denied such accusations. Due to the tensions between the U.S. and Iran, the UAE and Saudi Arabia are finding ways to bypass the Strait of Hormuz. The countries have mainly tried to build pipelines as potential alternatives however these pipelines have been frequently attacked by the Houthi militia , which makes them unfeasible alternatives to the strait.  Bab-el Mandep Strait Known as the Gate of Tears for its dangerous navigation conditions. This choke point like the Strait of Hormuz is essential for the oil trade globally. Approximately  3.8 million barrels of oil pass through the waterway per day. The blockade of this choke point has the potential to impact global oil trade as the only other alternative would be to go through the Cape of Good Hope, making it the center of global trade and geopolitical tension. It was historically the site of a naval blockade of Israel by Egypt in the Yom Kippur War and is presently the site of Yemen’s Houthis  due to the ongoing conflict in Palestine as a way to extend support to Hamas. These blockades have led to major shippers re-routing their trade via the Cape of Good Hope. Alternatively, many ships have docked themselves at the Red Sea and others have turned off their tracking systems as traders adjusted their routes. Strait of Malacca The Strait of Malacca is one of the narrowest straits in the world and is surrounded by Indonesia, Malaysia and Singapore . It is a particularly significant strait for China as two-thirds of its trade passes through this strait. It provides vessels with the shortest access to the Asian market . It also faces significant structural challenges by being narrow and poses high risks for grounding, spills, and collisions. It is also a focal point for geopolitical tension due to its significance for China, there are serious attempts to build alternatives like the Kra Canal . However, the costs to build such a canal are massive, and various governments have failed in their attempts to build the canal. Hence, making the strait of Malacca one of the most vulnerable yet important choke points in the world. Panama Canal This strait provides a shortcut  for ships traveling between the Pacific and Atlantic Ocean. It became operational in 1914  and links the east and the west coast of the United States, shortening the trade route by 21 days , making it strategically advantageous. However, this strait faces many challenges due to climate change and El Niño. The canal has been facing conditions of  drought which has significantly dropped water levels at the canal, causing authorities to significantly limit the number of ships that can pass through the canal. Which has caused significant shipping problems for the U.S. Turkish Straits These straits consist mainly of two waterways , the Bosporus and Dardanelles. They act as the primary maritime link between the Black Sea and the Sea of Marmara. Turkish strait was set as the prime trade route for Russian oil for Southern and Western Europe. Thus, making it essential for Europe’s oil and energy trade. It is one of the world’s most difficult waterways to navigate, facing challenges like heavy traffic and narrow waterways. Similar to the Panama Canal, Turkish authorities have imposed restrictions on commercial trade in this strait. Additionally, the region faces geopolitical challenges due to new insurance regulations implemented by Turkish authorities, resulting in shipping delays. Danish Straits Like the Turkish Straits, the Danish Straits are also essential to European Oil trade. It is estimated that around 3.2 million barrels of crude oil and petroleum products flowed through the strait in 2016. Despite geopolitical tensions, it is unlikely that this strait will face a blockade as Russia  would essentially be sabotaging its trade routes and would end up losing millions of dollars. Impact Choke points in international trade are largely controlled based on geopolitical interests. Today, economic giants wield significant control over these critical junctures. However, choke points pose substantial geographical risks to supply chains and industries, potentially leading to economic disruptions. Producers are at the forefront of the risk as it may impact them financially and lower their profit margins. This will not stop here, labor economics plays a vital role in making trade profitable and continuity of availability of goods and supply chain effective for global trade. Industrial policies help businesses to shape, prosper, and align with the national interest, making it a dual sword for the supply chain, as disruption over the choke points can highly impact the industrial policies of the nation by realigning with the incentive offerings by the state.   As global and domestic agendas pressurize industries to follow ESG-based norms and decarbonize their operations, many companies are globally increasing their focus on the regions with clean energy supplies to reduce their carbon footprints and enhance overall sustainability. Policies such as the EU’s Green Deal  are incentivizing European companies to adopt more low-carbon energy sources by relocating manufacturing closer to home.   Simultaneously, managing domestic consumption versus port traffic and securing trade routes has become increasingly challenging and costly business for many countries. As securing trade routes with the help of private or military escorts are adding to the budget of the countries. Port infrastructure equipped with modern technology and machinery have become most needed for the effective operations on the ports. Combining all the leading focal points in the trade business are asking for alternatives and innovative solutions to transform global trade practices, to ensure a more sustainable and efficient future for the global economy and trade. Factors Maritime trade  remains the primary mode of trade in an increasingly globalized world, with 80% of global trade  conducted via sea routes. Sea routes are the most cost-effective means of transporting large volumes of goods compared to land, air, or rail. The presence of Free Trade Agreements (FTAs) further reduces costs by decreasing or eliminating customs duties associated with maritime trade. These agreements enable companies to invest in more sustainable practices and promote decarbonization efforts, helping them meet their ESG goals and reduce global carbon emissions. The increasing number of FTAs will allow businesses to maximize profits and expand their trade potential, thereby increasing their investment capacity. A prime example is seen in Korean firms , which benefit significantly from an efficient maritime supply chain bolstered by FTAs. The success of these firms demonstrates that increased investments lead to a higher demand for maritime trade as businesses expand, creating a cycle of economic growth on a global scale.   Bilateral and multilateral agreements will be and have been a key focus for leaders globally to expand their nation's economic opportunities by making “friendly” partners where trade exists. This estimates the rise in regional trade and blocs such as the USMCA, Comprehensive and Progressive Agreement for Trans-Pacific Partnership, Regional Comprehensive Economic Partnership, and EU-Vietnam Free Trade Agreement, etc. This also means working with their counterparts on effective strategies to mitigate the challenges and opportunities of the trade. 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