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India's 4-Point Tariff Strategy Aims for 7.4% Growth, Says Top Advisor

The Chairman of the Prime Minister's Economic Advisory Council has detailed a four-pronged government strategy to tackle tariff challenges. The plan focuses on industry support, export diversification, new FTAs, and ongoing US trade negotiations. He emphasized that sustaining 7-8% growth is crucial for India to become a developed nation by 2047, requiring a rise in the investment rate. Recent reforms like opening the nuclear sector to private players are part of efforts to improve the ease of doing business.

Key Points: India's 4-Point Plan for Tariffs and 7.4% Growth Target

  • Support domestic industries
  • Diversify exports to new markets
  • Pursue new free trade agreements
  • Continue US trade deal talks
2 min read

4-point plan to tackle tariffs as India eyes 7.4 pc growth: EAC-PM's Chairman

EAC-PM Chairman outlines strategy on tariffs, FTAs, and reforms to sustain high growth and achieve 'Viksit Bharat' by 2047.

"India has the right policy framework, but sustaining a growth rate of 7-8 per cent is essential. - S. Mahendra Dev"

New Delhi, Jan 10

Chairman of the Prime Minister's Economic Advisory Council S. Mahendra Dev on Saturday said that the Indian government is following a four-pronged strategy to address tariff-related challenges, focusing on industry support, export diversification, free trade agreements, and trade negotiations with the United States.

Speaking to IANS on the sidelines of the SKOCH Summit here, Dev said the government's approach includes: supporting domestic industries, diversifying exports towards Asian, African and Latin American markets, entering into free trade agreements (FTAs) with other countries, and continuing discussions with the US for a trade deal.

On the goal of achieving a 'Viksit Bharat' (Developed India), Dev said several countries such as Japan and South Korea have already achieved this status.

"India has the right policy framework, but sustaining a growth rate of 7-8 per cent is essential," he told IANS.

"For this, the investment rate needs to rise to 35 per cent from the current level of around 30 per cent," Dev added.

Commenting on economic growth, Dev said India's GDP growth is expected to be around 7.4 per cent this year, while next year it may moderate to between 6.5 per cent and 7 per cent.

"In the four years since the pandemic, India's average growth rate has been about 7.7 per cent," he noted.

He further said the government is aggressively promoting ease of doing business to achieve the target of Developed India by 2047.

"As part of these reforms, the Centre has recently opened the nuclear sector to private companies, approved 100 per cent foreign direct investment in the insurance sector, and undertaken decriminalisation and deregulation of several laws," Dev mentioned.

- IANS

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Reader Comments

A
Arjun K
Good to see a clear plan. But the real challenge is implementation at the ground level. Supporting domestic industries sounds great, but are MSMEs getting the actual support they need to compete globally? The ease of doing business reforms must trickle down.
R
Rohit P
7.4% growth is impressive, especially post-pandemic. Opening nuclear and insurance sectors to private investment is a bold reform. This can bring in serious capital and technology. Viksit Bharat by 2047 is an ambitious but achievable goal if we keep this momentum.
S
Sarah B
As an observer, India's growth story is fascinating. The shift in export focus shows strategic thinking. However, raising the investment rate to 35% is a huge jump. Where will this investment come from? Domestic savings need a boost alongside FDI.
V
Vikram M
Decriminalisation of business laws is a welcome step! It reduces the fear factor for entrepreneurs. Now, we need to ensure state governments also simplify their processes. The plan is good on paper, execution is key. Jai Hind!
K
Kavya N
While the macro numbers look good, I hope this growth creates quality jobs for our youth. Diversifying exports should also mean adding more value to our products, not just raw materials. Let's aim for high-tech manufacturing exports too.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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