As global trade tensions persist, both major economies are under pressure to de-escalate, presenting India with a strategic opportunity to deepen its integration into the world economy and leverage the shifting geopolitical landscape.

To capitalize on this moment, India should accelerate free-trade agreements with key partners such as the EU, UK, Japan, and Taiwan, which would boost governance, incentivize innovation, and open new markets for domestic firms.

The broader geopolitical environment is increasingly unstable, with China violating WTO principles through aggressive military and economic actions, thereby undermining international stability and norms.

To seize this opportunity, India must implement domestic reforms, including overhauling regulations, deepening indirect tax reforms, and addressing issues in judicial, labor, and land laws to create a more investment-friendly environment.

Indian companies need to go global by engaging with foreign capital, technology, and skilled personnel—particularly in liberal democracies—to enhance competitiveness and reduce dependence on domestic market cycles.

Meanwhile, the US-China trade confrontation remains a high-stakes game, with both countries facing internal vulnerabilities—China's property sector crisis and demographic decline, and the US's economic stagnation, inflation, and a weakening dollar.

India should prioritize concluding a comprehensive trade and investment agreement with the US to stabilize this vital relationship and foster cooperation in technology, finance, and services.