Trade Policy

Why it matters

• It acts as a primary tool for managing the balance of payments and protecting domestic industries from unfair international competition.
• It facilitates integration into global value chains by determining tariff structures and non-tariff barriers.
• It influences domestic employment levels and industrial growth by incentivizing specific export-oriented sectors.
• It serves as a diplomatic instrument for negotiating bilateral and multilateral economic agreements.

How it is asked

Candidates should focus on the shift from protectionist measures to export-led growth strategies, the impact of trade policy on the 'Make in India' initiative, and the role of the World Trade Organization in constraining national policy autonomy.