New Delhi, Dec. 28 -- Three important shifts are quietly underway in India that could shape the economy through 2026 and beyond. One, even as the world is becoming more protectionist, India is opening up: At a time when many countries are turning inward, India is moving in the opposite direction.

Over the last year, it has been cutting import tariffs on intermediate inputs, trying to fast-track trade deals with various countries and becoming more open to foreign direct investment (FDI) across sectors.

These steps can have sizeable benefits because the nature of trade itself is changing-in a way that can work to India's advantage, particularly if it continues to signal openness.

Even as goods trade falls under the shadow of tariffs and ...