In a bold move to counter escalating global trade tensions, India is implementing a comprehensive four-pronged strategy to address tariff challenges, according to renowned economist Mahendra Dev. Speaking at a key economic forum, Dev projected India’s GDP growth at a robust 7.4% for the current fiscal year, underscoring the nation’s resilience amid protectionist headwinds.
The strategy’s first pillar focuses on diversifying export markets beyond traditional partners like the US and Europe. ‘We must aggressively tap into emerging economies in Africa, Southeast Asia, and Latin America,’ Dev emphasized, highlighting India’s competitive edge in IT services, pharmaceuticals, and textiles.
Secondly, bolstering domestic manufacturing through Production Linked Incentive (PLI) schemes remains central. These initiatives have already attracted billions in investments, creating jobs and reducing import dependency. Dev noted recent successes in electronics and auto sectors as proof of concept.
The third approach involves negotiating bilateral trade agreements to secure preferential access. Ongoing talks with the UK, UAE, and Australia are poised to open new avenues, mitigating the impact of unilateral tariffs imposed by major economies.
Finally, investing in supply chain resilience through infrastructure upgrades and digital integration forms the fourth pillar. ‘Building Atmanirbhar Bharat isn’t just a slogan; it’s an economic imperative,’ Dev asserted.
Despite headwinds from global tariffs, particularly from the US on steel and aluminum, India’s macroeconomic fundamentals remain strong. Inflation is controlled, forex reserves are at record highs, and private consumption is rebounding. Dev’s 7.4% growth forecast surpasses global averages, positioning India as a bright spot in the world economy.
Experts echo Dev’s optimism but caution against complacency. Strengthening R&D and skill development will be crucial to sustain this trajectory. As India navigates these turbulent waters, its four-pronged approach signals strategic maturity on the global stage.