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Persistent global shocks—including tariff uncertainties, geopolitical tensions, and supply chain disruptions—have reshaped international trade dynamics, , according to the Ministry of Finance’s August 2025 Monthly Economic Review.

Global Trade Uncertainty at Record Levels

In 2025, uncertainty reached unprecedented levels, with the Trade Policy Uncertainty (TPU) Index peaking in Q2 CY25 at the highest quarterly level since 1960. On a QoQ basis, the TPU Index rose 101.3% in Q1 CY25 and 63.7% in Q2 CY25, driven by industrial policies, competition for critical raw materials, and unilateral trade measures by several nations. Against this challenging backdrop, India’s trade performance in August 2025 demonstrated remarkable resilienc

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