World Bank Chief Urges India to Seize Global Trade Opportunities, Praises Landmark EU Agreement

Highlighting India’s rising influence in international commerce, World Bank Group President Ajay Banga on Thursday welcomed the recently concluded India–European Union trade agreement, calling it a mutually beneficial step that will open doors for people on both sides by reducing tariff and non-tariff hurdles.

Speaking amid growing trade uncertainties and pressure from US tariff policies, Banga advised India to shift its focus away from protectionist measures and instead concentrate on expanding economic opportunities.

He pointed out that enormous employment potential lies in five major sectors — infrastructure development, agriculture, primary healthcare services, tourism, and value-added manufacturing.

During his visit to Odisha, Banga toured the Central Tool Room and Training Centre (CTTC) in Bhubaneswar, an institution under the Union MSME Ministry that partners with industries to provide young people with practical, job-oriented technical training.

Addressing the media, Banga noted how dramatically global trade has evolved over the past two decades.

While overall trade volumes have quadrupled, the share of emerging economies has doubled from 20 percent to 40 percent. Countries like India, he said, are now central players in the global marketplace.

At the same time, he cautioned that the implementation of the India–EU Free Trade Agreement must be carefully phased to protect domestic industries on both sides from potential disruption.

Earlier this week, India and the EU officially concluded negotiations on the long-awaited FTA. Prime Minister Narendra Modi said the agreement would strengthen India’s manufacturing base and significantly expand service-sector opportunities.

Commenting on global trade volatility and US tariff-related challenges, Banga reiterated that India’s strength lies beyond export dependence.

While exports form a large portion of many economies, India’s growth is largely driven by domestic consumption and capital investment.

Therefore, he said, the emphasis should remain on leveraging new opportunities rather than worrying excessively about tariff structures.

On India’s projected growth rate of 6.8 to 7.2 percent, as outlined in the Economic Survey, Banga expressed confidence in the country’s ability to sustain strong economic momentum, noting its proven track record of high performance.

He underscored that preparing India’s massive youth population for employment is critical to achieving the vision of a Developed India by 2047.

With nearly 12 million young people entering the workforce every year, effective skill development can enable them to find work not only within cities and villages across India but also in international markets.

Banga further stressed that large-scale job creation would require investments in both physical infrastructure and human capital, along with business-friendly regulations and strong financial support for the private sector.

Officials also revealed that a new World Bank Group–India strategic partnership framework is set to be formally announced in New Delhi on Friday.

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