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Informist, Monday, Oct. 6, 2025

 

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--NITI Aayog CEO: India's trade deficit manageable 
--CONTEXT: NITI Aayog CEO remarks at release of Trade Watch Quarterly report 
--NITI Aayog CEO: Have room to expand trade deficit, if necessary 
--NITI Aayog CEO: India's trade unbalanced, tilted in wrong direction 
--NITI Aayog CEO: India should not protect any sector in terms of trade 
--NITI Aayog CEO: Need to improve mfg in India 
--NITI Aayog CEO: Need to improve competitiveness in Indian mfg 
--NITI Aayog CEO: India needs to diversify manufacturing 
--NITI Aayog CEO: In last stages of launching National Manufacturing Mission 
--NITI Aayog CEO: Should integrate trade with ASEAN, Japan more deeply

 

NEW DELHI – India's trade deficit remains manageable and can be expanded, if necessary, NITI Aayog Chief Executive Officer B.V.R. Subrahmanyam said Monday. However, if India wants to improve its share in the global export market, it should integrate its trade with Asian nations more deeply, particularly China, Subrahmanyam said.

 

"What we call look east, or act east, it's not happening in economics. This is where the growth of the world is. We are still plugged into the wrong old markets," Subrahmanyam said at a press conference. India's trade is very unbalanced, tilted in the wrong direction, concentrated in a few products, and "it's concentrated in the wrong products", Subrahmanyam said. 

 

India had a dominant share in exports of certain products long ago, which were also the large products traded worldwide, the NITI Aayog CEO said. "But the world has moved on. India didn't move on."

 

For India to improve competitiveness in global export market, it needs to improve factors of production, reduce tariffs, and lower non-tariff barriers, Subrahmanyam said. "...make things come in easily. And last but not the least, focus on Asia big time. There is no escape in that," he added.

 

India should increase trade with the Association of Southeast Asian Nations, Japan, South Korea, and also China, the NITI Aayog CEO said. "ASEAN is far more integrated than South Asia. It works to our disadvantage," he said.

 

On trade with China, Subrahmanyam said exporting to China is important because of the size of its economy. "You can't avoid that economy. You should be able to compete and sell. Good countries have great surpluses in China. If you are competitive, they will buy your stuff," he said. 

 

Subrahmanyam said India's exports have not yet been disrupted by the 50% tariff imposed by the US but it may become an issue by summer next year if the two countries fail to secure a trade deal.

 

India also needs to open its markets, improve and diversify manufacturing, and improve competitiveness in manufacturing to become more competitive in the global export market, Subrahmanyam said. "I don't think India should protect any sector," he said.

 

To boost manufacturing, the government will soon launch the National Manufacturing Mission, which is in the last stage of being launched, Subrahmanyam said. "Hopefully, this is something which is going to be well-designed, which takes into account a lot of discussions and other ideas that are coming out," he said.  End

 

Reported by Shubham Rana

Edited by Akul Nishant Akhoury

 

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