SARC Davos Dialogue 2026 Examines Trade Dynamics and India’s Role

A pivotal discussion at the Davos Dialogue 2026, hosted by SARC Global, explored the intricate relationship between strategic autonomy and global trade efficiency. As financial restrictions, sanctions, and trade controls redefine international commerce, the dialogue underscored the importance of compliance and institutional credibility. The closed-door sessions addressed the evolving dynamics of global trade and the implications for countries like India.

During the discussions, a significant emphasis was placed on how increasing sanctions and compliance pressures often drive trade underground, leading to a burgeoning shadow economy. In contrast, India’s approach supports formalisation, aiming to integrate more economic activity into legitimate channels. This strategy was highlighted in the session titled “Competitive Federalism: Which Indian States Will Win the Next Decade?” which examined how regulatory certainty and infrastructure readiness will influence India’s capacity to capitalise on global trade re-routing.

Chairman and Global Leader of SARC Global, Sunil Kumar Gupta, led the roundtable, which featured notable moderators such as Namrata Singh Abrol, Founder of The Humanists Collective, and Ranu Gupta, Co-Founder and CEO of SARC Global. Gupta remarked, “India’s journey toward a Viksit Bharat @2047 is being carried forward by execution at scale—where compliance strengthens confidence, openness expands opportunity, and growth is built on systems designed to perform under stress.”

As the global economy shifts, the discussions also revolved around whether it is feasible to achieve strategic autonomy without compromising on efficiency, innovation, or openness. This question gains urgency as climate risk and policy volatility become defining characteristics of the global economic landscape. Participants noted that climate change is a systemic supply-chain risk, which necessitates a recalibration of industrial policy, trade competitiveness, and capital allocation. Extreme weather events, carbon regulations, and ESG-linked finance were cited as critical factors reshaping these priorities.

A sector-specific approach emerged, emphasizing that strategic autonomy should be tailored rather than ideological. Key sectors such as energy, semiconductors, pharmaceuticals, food systems, defence, and digital infrastructure require enhanced resilience, while others still benefit from global integration. The dialogue also included discussions on India’s regulated alternative settlement mechanisms, which have become increasingly relevant in the current economic context.

The session concluded with a consensus that India’s model, which combines trade regulation, compliance capacity, and strategic restraint, effectively limits the growth of shadow trade. This model not only supports export credibility but also enhances tax realisation and attracts manufacturing inflows. As the world navigates complex trade realities, India’s approach may serve as a valuable case study for balancing strategic autonomy with the demands of a rapidly changing global economy.