Phase IFoundation
Background
Overview
UPSC frequently asks about India's trade policy, its engagement with global trade, and the impact of international trade dynamics on the Indian economy. Understanding trade disputes and protectionist tendencies is crucial for analyzing global economic trends and their implications for India.
International trade disputes arise when countries impose trade barriers like tariffs or quotas, or engage in practices perceived as unfair, leading to retaliatory measures and strained economic relations. Protectionism, the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations, is often a root cause.