Deglobalization and shifting trade policies impact global markets

The global economic landscape is undergoing a significant shift toward deglobalization, as governments and businesses prioritize supply-chain security and resilience over pure efficiency. This trend, characterized by the unraveling of three decades of international cooperation, is driven by persistent geopolitical tensions and evolving tariff policies.

In India, exporters are navigating a complex environment marked by changing tariff structures and unpredictable shipping expenses. Despite reaching a milestone of $863.1 billion in merchandise and services exports for FY 2025–26, Indian businesses must adapt to market-specific regulations and rising freight charges to remain competitive.

Experts note that while specific conflicts, such as those involving Iran, impact energy prices and household budgets, they are part of a broader movement. The increasing divide between the Eastern and Western Hemispheres, alongside new trade arrangements, suggests that the shift toward localized and secure supply chains is a long-term economic adjustment.