India Must Solve Structural Issues for Viksit Bharat Aim: WTO

GENEVA — India must resolve critical structural challenges—including high trade costs, regulatory complexity, infrastructure gaps, and barriers to deeper global integration—to achieve its Viksit Bharat aim by 2047.

The assessment was detailed in the World Trade Organization’s (WTO) Secretariat report for India's eighth Trade Policy Review, discussed in Geneva starting July 21, 2026. While acknowledging India's performance as the fastest-growing major economy among G20 members, the multilateral trade body emphasized that sustained economic growth of approximately 8% annually is necessary to transform the lower-middle-income nation into a fully developed economy by the centenary of its independence.

Macroeconomic Outlook and Growth Requirements

According to the WTO Secretariat’s report, India's real Gross Domestic Product (GDP) growth is forecast to range between 6.8% and 7.2% for FY2027–28. This continues a trend of economic expansion recorded during the review period spanning January 1, 2021, to December 31, 2025.

+-----------------------------------------------------------------------+
|             WTO Trade Policy Review: Key Metrics for India            |
+--------------------------+--------------------------------------------+
| Metric                   | Value / Target                             |
+--------------------------+--------------------------------------------+
| Forecast Real GDP Growth | 6.8% – 7.2% (FY2027–28)                    |
| Required Annual Growth   | ~8.0% annually for Viksit Bharat by 2047   |
| Combined Exports FY2026  | $863.1 Billion (Merchandise & Services)    |
| Global Export Share Goal | Increase from ~1.8% (2024) to 10% (2047)   |
| Average MFN Applied Tariff| 15.8% (2025–26)                           |
| Average Basic Customs Duty| 13.6% (Down from 14.3% in FY2020–21)       |
+--------------------------+--------------------------------------------+

To reach high-income country status under the government's Viksit Bharat aim by 2047, the report notes that India must maintain elevated growth rates over the next two decades. The report highlights that expanding total merchandise and services exports from current levels to a 10% share of global merchandise exports by 2047 will require addressing domestic structural bottlenecks and lowering trade barriers.

Tariff Structures and Trade Policy Developments

The WTO review noted progress in financial inclusion, foreign direct investment (FDI) liberalization, and digital public infrastructure, such as the India Stack. However, the report pointed out that India's trade policy framework retains elements of protectionism, including high applied tariffs, state trading measures, and extensive budgetary subsidies for food grains and fertilizers.

India's simple average applied Most-Favoured-Nation (MFN) tariff stood at 15.8% in 2025–26, up from 14.3% in FY2020–21. However, the average Basic Customs Duty (BCD) decreased slightly to 13.6%. Sectoral tariff breakdowns reveal higher protection for agricultural goods—averaging 32.8%—compared to non-agricultural products at 11.1%.

To overcome these barriers and integrate with global value chains, India has actively pursued regional trade agreements. India currently maintains 19 active Free Trade Agreements (FTAs) and has signed or concluded negotiations on eight major trade deals since 2021. Consequently, combined merchandise and services exports reached a record $863.1 billion in FY2025–26, up 6.3% from $676.5 billion in FY2021–22.

Administrative Reforms and External Headwinds

To boost competitiveness and support the Viksit Bharat aim by 2047, the WTO report recommends expanding administrative reforms, such as the Jan Vishwas (Amendment of Provisions) Act, to enhance the business environment and reduce reliance on trade-restrictive measures.

The report also acknowledges that Indian exporters face external headwinds, including global supply chain disruptions caused by geopolitical conflicts, climate events, and non-tariff measures in overseas markets. Complex international standards and regulatory requirements continue to constrain market access for Indian manufacturing sectors abroad.

Official Sources Section

According to official documents published for the Trade Policy Review by the World Trade Organization Secretariat, the evaluation forms part of the WTO’s regular transparency mechanism. Official responses prepared by the Ministry of Commerce and Industry emphasize that India’s economic strategy remains focused on balancing domestic resilience with rules-based multilateral trade.

Quote Section

"According to officials from the World Trade Organization Secretariat, sustaining the strong economic performance needed to reach the Viksit Bharat vision of a developed India by 2047 will require addressing structural challenges, including high trade costs, regulatory complexity, infrastructure gaps, and barriers to deeper global integration."

Why It Matters

Resolving structural trade barriers directly affects domestic businesses and international investors by lowering operational costs and streamlining supply chains. Achieving the Viksit Bharat aim by 2047 requires sustained industrial efficiency, improved infrastructure, and competitive integration into global value chains, which can drive long-term employment and income growth for Indian citizens.

Key Facts at a Glance

• Growth Requirement: India needs to sustain ~8% annual GDP growth to achieve its developed nation target by 2047.

• Export Expansion: Combined exports reached $863.1 billion in FY2025–26, with an objective to capture 10% of global merchandise exports by 2047.

• Tariff Overview: Average applied MFN tariff rates stood at 15.8%, with agricultural products facing higher average duties of 32.8%.

• Trade Agreements: India maintains 19 active FTAs, having finalized eight major trade agreements since 2021 to improve market access.

FAQ Section

What is the Viksit Bharat goal for 2047?

The Viksit Bharat vision aims to transform India from a lower-middle-income economy into a fully developed nation by 2047, the 100th anniversary of its independence.

What structural issues did the WTO highlight?

The WTO identified high trade costs, regulatory complexity, infrastructure gaps, high tariffs, and limited integration into global value chains as key structural challenges.

How fast is India's economy projected to grow?

The WTO forecasts real GDP growth between 6.8% and 7.2% for FY2027–28, though an estimated 8% annual growth rate is needed long-term to reach developed nation status.

How many active FTAs does India currently have?

India has 19 active Free Trade Agreements and has intensified engagement by concluding or signing eight major trade agreements since 2021.

Source: World Trade Organization, Ministry of Commerce and Industry, Press Information Bureau.