Interest groups—ranging from business lobbies and industry associations to labor unions and environmental NGOs—play a pivotal role in shaping trade policies by exerting influence over policymakers through lobbying, advocacy, campaign financing, and expert input. These groups often represent concentrated economic interests and seek to shape trade rules in ways that benefit their constituencies, such as securing protective tariffs, subsidies, or favorable trade agreements. While their involvement can enhance the democratic process by incorporating stakeholder perspectives and technical expertise, it also risks skewing policies in favor of elite or well-organized actors at the expense of broader societal welfare. This dynamic can lead to protectionist measures that undermine competition and innovation, particularly in developing economies where vested interests may dominate policy discourse. However, in cases where interest groups advocate for fair trade, labor rights, or environmental standards, their influence can promote sustainable economic development. The impact of trade policies shaped by interest groups thus varies: when aligned with long-term national interests and inclusive growth objectives, they can facilitate industrial development, technology transfer, and market access; when dominated by narrow interests, they may entrench inequality, inefficiency, and dependency. Consequently, the challenge for public policy lies in designing transparent, accountable institutions that balance competing interests to ensure trade policy fosters broad-based economic development rather than serving sectional gains.

Shashwata Sahu I agree with your points, Madam, about the significant role interest groups play in shaping trade policies. While their involvement can bring expertise and representation, it’s crucial to ensure that their influence doesn’t disproportionately favor elite groups, leading to policies that harm broader societal welfare. You are truly eloquent, especially in highlighting (1) striking the right balance through transparent and 2) accountable policymaking is key to fostering sustainable economic development.