India’s Chief Economic Advisor (CEA), V. Anantha Nageswaran, has called for a reduction in the country’s high import duties to bolster economic growth and enhance global trade competitiveness. Speaking at a recent event, Nageswaran emphasized that lower tariffs would encourage investment, spur innovation, and align India more closely with global supply chains.
Nageswaran pointed out that the existing import duties are a burden for industries relying on raw materials and intermediate goods, increasing production costs and reducing competitiveness. He stressed that a recalibration of import taxes could significantly benefit sectors like electronics, automotive, and manufacturing, where India has ambitions to become a global leader. Reducing duties would also make India more attractive to foreign investors, particularly in the context of the “Make in India” initiative aimed at boosting domestic production and exports.
High import duties have long been a contentious issue in India’s trade policy, with businesses urging the government to create a more favourable environment for both domestic and international companies. Nageswaran’s comments reflect a growing consensus among policymakers that reducing tariffs could foster greater economic integration and help India achieve its goal of becoming a $5 trillion economy.
India has imposed higher tariffs in recent years as part of its strategy to protect domestic industries and encourage local manufacturing. However, experts argue that lowering these tariffs could stimulate greater competition, improve efficiency, and lower prices for consumers. Nageswaran indicated that the government is reviewing its tariff policies to strike a balance between protecting domestic interests and fostering an open, competitive market.
The CEA’s remarks are likely to influence future trade negotiations as India continues to engage with global partners and seeks to expand its role in international trade.