India's Path to Development: Cutting Tariffs and Embracing Global Chains

NITI Aayog CEO BVR Subrahmanyam argues that India must cut tariffs and integrate into global supply chains for development. Completing trade agreements, deregulating, and skilling are crucial. A national manufacturing mission is in the pipeline, focusing on electronics and auto components sectors, with education and agriculture as key priorities.

NITI Aayog CEO BVR Subrahmanyam emphasized that tariffs do not safeguard any country's interests, and it is imperative for India to reduce them for its own benefit. He stated this while speaking at the 69th Foundation Day of the All India Management Association (AIMA) on Friday.

Subrahmanyam highlighted that for India to become a developed nation, opening up to international trade should be a top priority. This includes entering trade agreements with major economies like the European Union and the United Kingdom. He also underscored the importance of deregulation at both central and state levels to enhance India's participation in global supply chains.

The CEO pointed out that countries like Indonesia and Vietnam have benefitted from global companies' 'China plus one' strategy. He argued that integrating into the global value chain requires more than just production-linked incentives; it demands deregulation and skill development. Furthermore, Subrahmanyam discussed initiatives like the national manufacturing mission, which aims to coordinate with multiple ministries to streamline manufacturing policies and jumpstart various sectors including electronics and auto components.