AI, Geopolitical Conflicts, And Sustainability Checks To Influence Global Trade In 2025, Say Experts

The experts suggested that India should prioritise their AI strategy ‘as it promises to transform trade logistics and supply chain management and reshape traditional trade patterns.

Experts pointed out that geopolitical tensions and the possibility of a renewed trade war led by the US under President-elect Donald Trump will also influence world trade in the year.

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Increasing barriers driven by sustainability, rapid advancements in AI, and China’s overcapacity in key sectors, among other factors will have a major impact on global trade in 2025. Experts pointed out that geopolitical tensions and the possibility of a renewed trade war led by the US under President-elect Donald Trump will also influence world trade in the year.

To deal with these obstacles, the experts suggested that Indian exporters and importers should work in cooperation with the government, reported PTI. They recommended that India should prioritise their artificial intelligence (AI) strategy ‘as it promises to transform trade logistics and supply chain management and reshape traditional trade patterns.

Focus On AI

Deep Kapuria, trade expert and Hi-Tech Gears Chairman, said, “AI is fast emerging as an important vehicle for future trade's journey. The AI-driven digital transformation is poised to boost not only services trade, but it may also create whole new categories of tradable AI-powered goods -- from autonomous vehicles to robotics and beyond.”

S K Saraf, Chairman and MD, Technocraft Industries, noted that the domestic industry needs to heavily invest in advanced and new-age technologies to become competitive and capitalise on opportunities. The exporters would need to figure out ways to increase exports to the US ‘as imposition of high tariffs on Chinese goods by America would open up huge potential for them’.

Sustainability

Regarding sustainability requirements, Kapuria said businesses from developing countries need to invest in resources to comply with the environmental and social sustainability parameters. “Complying with sustainability indicators is also important for companies to get integrated into GVCs (global value chains) as new laws such as EU Corporate Sustainability Due Diligence Directive make it legally mandatory to ensure supply chain becomes sustainable,” he added.

The experts noted that large economies like the EU are looking toward trade agreements to drive their sustainability agenda in partner countries. Ashwani Kumar, President, Federation of Indian Export Organisations (FIEO) said, “There is a need for a certified agency to measure carbon emission from domestic manufacturing practices. We have asked certain foreign agencies to work with us in this direction as EU measures would impose serious issues for exporters in India.”