NITI Aayog CEO BVR Subrahmanyam emphasized the need for India to reduce tariffs to integrate into global supply chains and become a developed nation. Speaking at the AIMA’s 69th Foundation Day, he highlighted the importance of completing trade agreements with major economies and deregulating both central and state levels. Subrahmanyam criticized the cumbersome paperwork impacting MSMEs and outlined NITI Aayog’s plans for a national manufacturing mission to streamline policies. He also stressed the need to transform agriculture, enhance education, and promote interstate enterprise flow for balanced development, while noting that state ratings encourage necessary reforms.
New Delhi:
NITI Aayog CEO BVR Subrahmanyam stated on Friday that tariffs do not provide protection to any nation and that India must reduce tariffs for its own benefit, regardless of external pressures.
Speaking at the 69th Foundation Day of the All India Management Association (AIMA), Subrahmanyam emphasized that prioritizing openness to the global market is crucial for India’s aspiration to become a developed nation.
He highlighted that in order to lower tariffs, India should finalize trade agreements with the European Union, the United Kingdom, and other significant economies.
The NITI Aayog CEO stressed the importance of deregulating at both the central and state levels to integrate India into global supply chains.
While India attracts interest, potential visitors often choose to go to other countries, he noted.
Subrahmanyam pointed out that countries like Indonesia, Vietnam, and Turkey have benefited from the ‘China plus one’ strategy employed by global companies.
He contended that building a global value chain requires more than just production-linked incentives (PLI); it also necessitates deregulation and skill development.
The NITI Aayog CEO described the bureaucratic process involved in business as burdensome, which adversely affects micro, small, and medium enterprises (MSMEs).
According to him, NITI Aayog is actively working to integrate India into global supply chains across various sectors.
He mentioned that the recommendations from the Aayog regarding the electronics component supply chain are pending Cabinet approval, and it is also focusing on the necessary steps for the auto component, chemicals, textiles, and footwear sectors to join global supply networks.
Subrahmanyam announced that NITI Aayog is launching a national manufacturing mission in three months.
This mission will collaborate with over 20 ministries on policies pertaining to manufacturing, he added.
He posited that along with manufacturing, education and agriculture should be top priorities for the country to achieve developed status.
He indicated that India faces a paradox of having a sizable population alongside numerous vacant jobs due to a lack of relevant skills.
A transformation in agriculture is necessary, shifting the focus from rice and wheat to horticulture, floriculture, dairy, and similar activities, added Subrahmanyam.
Discussing state disparities, he remarked that states providing excellent education and business environments tend to be wealthier and are becoming even more affluent.
Subrahmanyam stressed the importance of states being open to enterprises from other regions, asserting that local entrepreneurs alone cannot drive state development.
“Enterprise should flow freely; restrictions will only hinder progress,” he stated.
The NITI Aayog CEO remarked that the system of rating states effectively encourages them to implement reforms.
He explained that the fiscal health index serves as a diagnostic tool, assessing states based on their budget management efficiency rather than merely the size of their economies.
“Some states may promise incentives but are unable to fulfill them financially,” Subrahmanyam concluded.
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