Trade deals should not damage domestic industries on either side, says World Bank President Ajay Banga

World Bank president Ajay Banga emphasises that trade deals must protect domestic industries while viewing tariffs as growth opportunities

An emerging economy like India is a key component in trade deals and the agreements should be signed in such a manner that domestic industries on either side are not damaged, cautioned World Bank Group president Ajay Banga here while commenting on the Free Trade Agreement (FTA) signed between India and European Union.

During his visit to the Central Tool Room and Training Centre (CTTC) in Bhubaneswar on Thursday (January 29, 2026), Mr. Banga said: “I think all trade deals are important. The way trade has changed over the last few years, in the last 20 years, global trade has quadrupled. But the share of the emerging markets has also doubled from 20% to 40%. So, emerging markets like India are now a key component in trade.”

“Regional and bilateral deals, in the last 20 years, about 100 were signed. But if you look at it now, they are doubling the number you are signing regional and bilateral. And the India-EU trade deal is an example of that. So, I think lowering both tariff and non-tariff barriers on both sides will benefit both sets of people,” he remarked.

“And I think that (India-EU FTA) is a very good idea. You have got to do it in a way that you do not damage domestic industries on either side,” Mr. Banga said.

On the issue of tariffs leading to a new world order, the World Bank President advised countries not to think much on the issue of tariff. “In [India’s] deal with the European Union, there is hardly any conversation about tariff. This should be seen as opportunity,” Mr. Banga pointed out.

“In the Indian economy, export constitutes some percentage, but domestic consumption and capital formation is a big strength. In some other countries, export is much higher percentage. So, tariff should be seen through opportunity perspectives,” he reiterated.