Over the past five years, the trade deficit in India has widened with other 25 major economies of the world despite a robust growth

Challenges include.

The Indain government posses a lot of barriers  to both local and foreign investors. As a result, this discourages entrepreneurship which negatively affects the trade sector. They include import licensing, Testing, labelling and certification, anti-dumping and countervailing measure, export subsidies and domestic support, export subsidy programs, strict trade policies and service barriers. All this barriers discourage and negatively affect the trade sector.

The poor road and infrastructure in India.  Such factors discourage smooth flow of goods and services. As a result the trade sector is negatively affected.

Also indian exporters face huge challenges that  discourage them from trading. Poor quality image, high costs, unreliability, infrastructure bottlenecks, inadequacy of trade information system, supply problems, faceless presence, uncertainties, procedural complexities, and institutional rigidities are just a few of the major issues that Indian exporters face. This challenges undermine  the trading sector. It discourages the exporters as they try to explore the international market.

the challenge of skills from the Indian population. This discourages the business men and women thinking to invest in the country. It is due to illiteracy and poor state of the country. As  a result, this weakens the trade sector.

Water is an important resource to trade, especially when it comes to manufacturing and processing companies. India has a country has water scarcity. This factor also cripples the trading sector.

Intra-regional trade in East faces a number of challenges, including persistent trade disputes, insufficient value addition in the agricultural sector, which has impacted export prices, NTBs, and a restrictive trade regime that limits manufacturers' ability to enter the regional market for products made from raw materials.

The indian market is price sensitive and does not value quality. This discourages investors in the country affecting trade sector.