New Delhi: In a significant call to action, NITI Aayog CEO BVR Subrahmanyam emphasized the necessity for India to cut tariffs to bolster its economic standing on the global stage. Speaking at the 69th Foundation Day of the All India Management Association (AIMA) in New Delhi on Friday, Subrahmanyam underscored that reducing tariffs is essential for India’s growth, regardless of external pressures.
Subrahmanyam argued that tariffs do not offer genuine protection to any country and that India must prioritize openness to the world if it aims to become a developed nation. He highlighted the importance of completing trade agreements with major economies such as the European Union and the United Kingdom to facilitate this process.
“Deregulation at both the central and state levels is crucial for integrating India into global supply chains,” Subrahmanyam stated. He noted that countries like Indonesia, Vietnam, and Turkey have benefited from the ‘China plus one’ strategy of global companies, and India should follow suit.
The NITI Aayog CEO criticized the extensive paperwork involved in doing business in India, describing it as “horrendous” and detrimental to MSMEs. He emphasized that global value chains require more than just production-linked incentives; they also need deregulation and skilling.
Subrahmanyam informed the audience that NITI Aayog is working to push India into global supply chains across various sectors, including electronics, auto components, chemicals, textiles, and footwear. The Aayog’s recommendations for the electronics component supply chain are currently awaiting Cabinet clearance.
Additionally, Subrahmanyam announced the conceptualization of a national manufacturing mission, set to be launched within the next three months. This mission will coordinate with over 20 ministries to streamline manufacturing-related policies.
Alongside manufacturing, Subrahmanyam identified education and agriculture as the top three priorities for India to achieve developed country status. He pointed out the country’s challenge of having a large population with vacant jobs due to a lack of relevant skills. Subrahmanyam also advocated for transforming agriculture by shifting focus from rice and wheat to horticulture, floriculture, dairy, and similar activities.
Addressing regional disparities, Subrahmanyam stressed that states need to be open to enterprises from other states to foster development. “Enterprise should flow freely, and restrictions will only push states back,” he warned. He praised the system of rating states as an effective tool for encouraging reforms and highlighted the fiscal health index of states as a diagnostic tool for evaluating their budget management efficiency.
