A CASE IS BEING MADE OUT FOR INDIA TO LOWER TARIFFS and allow import competition. It is added that this would benefit India irrespective of what President Trump wants. The PM addressing the 10th NITI Ayog Governing Council meeting suggested that the States should leverage the Free Trade Agreements (FTA) India is signing with several countries. In other words, the FTAs are going to be the new normal. Till now, India has had adverse experience with FTAs and that is why protectionism was increased during PM Modi’s first two terms.
Proponents of free trade have approved of the cuts in tariffs in the Union Budget 2025-26. They argue that India should offer greater market access for imports just as it seeks access from others. Is this just given that different countries are at different levels of development, and especially since the USA is going protectionist?
In quick succession, twice Trump has asked the CEO of Apple, Tim Cook, to build in the US and not in India. This also undermines foreign investment in India. This is inopportune currently, when net foreign investment in India has precipitously fallen by 96 percent. India needs more investment to boost its growth.
