New Delhi, May 29 -- India's export sector faces challenges from rising geopolitical tensions, protectionist trade policies, and the rising threat of a global tariff war, the Reserve Bank of India warned in its annual report. However, the central bank said India's active participation in 14 free trade agreements and six preferential trade agreements could help offset some of these headwinds.

India's ongoing negotiations for new deals with key trading partners such as the US, Oman, Peru, and the European Union are expected to provide fresh impetus to trade growth, RBI said in its report for 2024-25.

RBI alsowarned that rising input cost pressures for the manufacturing sector and subdued domestic demand posed risks to India's economic gro...