NITI Aayog CEO’s Optimism for India-US Trade Relations
At the recently held CNBC-TV18 Global Leadership Summit 2025, BVR Subrahmanyam, the CEO of NITI Aayog, exuded optimism regarding India’s proposed Bilateral Trade Agreement (BTA) with the United States. He expressed confidence that tangible progress could be expected by the end of November, signaling potential new horizons for India’s economic relations with one of its most significant trade partners.
Evolving Trade Context
Subrahmanyam acknowledged the complexities surrounding trade negotiations with the US, noting that there was a need for a "reset" in the relationship. While challenges exist, particularly as the US imposes pressure on India concerning its purchases of crude oil from Russia, he maintained that both countries are actively engaged in dialogue to address these issues. He stated, “I think things have been a bit difficult with the United States, and I think a reset is being tried.” This not only reflects a commitment to negotiation but also highlights India’s strategic importance in global trade dynamics.
India: The Bright Spot
Highlighting India’s robust appeal to foreign investors, Subrahmanyam emphasized that major American companies are increasingly establishing global capability centers in India. He remarked, “You don’t see anybody leaving. That basically means the fundamental attraction of India will trump everything else.” This statement underscores a broader narrative—India is positioning itself as a leading choice for investment in a fluctuating global market.
Trade Barriers and Strategic Challenges
However, the context of the trade discussions is undoubtedly complex. The recent sanctions imposed by the US on Russian crude oil producers, coupled with significant tariffs on Indian goods, cast a shadow over the ongoing negotiations. With additional import duties nearing 50% on Indian exports to the US, the road ahead is fraught with challenges. Subrahmanyam pointed out the historical context of trade tensions stemming from former US President Donald Trump’s tenure, further complicating the trade landscape.
A New Economic Pole
Despite these challenges, Subrahmanyam is optimistic about India’s future. He noted, “Given that, I think India will be a pole that attracts everyone else,” signaling that, rather than being pressured to align solely with the US or other international entities like BRICS, India will cultivate its own path. This perspective is emblematic of an emerging trend: countries are drawn to India’s internal strengths, which are increasingly regarded as assets in a turbulent global economy.
Resilience Amidst Global Flux
In his comments, Subrahmanyam stressed the importance of building internal capabilities to weather global uncertainties, whether they stem from tariffs or geopolitical crises. He articulated a view that India’s self-reliance and economic fortitude would enhance its attractiveness on the world stage, stating, “the more India builds up its internal strength, the more the world will actually look at New Delhi far more favourably.” This sentiment echoes the broader need for nations to foster economic resilience amidst fluctuating global trends.
Transformative Manufacturing Initiatives
A key highlight from the discussion was the introduction of the National Manufacturing Mission, a transformative initiative aimed at boosting India’s manufacturing sector. Designed to elevate the manufacturing share of GDP from the current 15-17% to 25%, this initiative is not just about financial investment. As Subrahmanyam noted, it’s about capability building—an approach that signifies a shift toward sustainable economic growth.
Navigating Relations with China
When discussing India’s economic engagement with China, Subrahmanyam acknowledged the complexity of global trade dynamics. He pointed out that shutting off a significant economy, which constitutes 20% of the global market, is neither practical nor feasible. This acknowledgment reveals the nuanced approach India must take in balancing its relationships with various economic powerhouses.
The Essence of ‘Swadeshi’
Finally, clarifying Prime Minister Narendra Modi’s emphasis on ‘Swadeshi’, Subrahmanyam reaffirmed that this concept does not equate to protectionism. Instead, it embodies a vision of self-reliance and preparedness against economic surprises. He stated, “What he is talking about is securing yourself from surprises and being self-reliant when necessary,” illustrating a thoughtful approach to growth and sustainability.
In summary, the remarks made by Subrahmanyam at the summit resonate with a broader narrative of opportunity, resilience, and strategic economic positioning, positioning India at the forefront of global economic conversations.
