VR Subrahmanyam, CEO of NITI Aayog, emphasized the significance of reducing tariffs for India to integrate into global value chains (GVCs) and enhance its competitiveness on the global stage. Speaking at the CII's Annual Business Summit, Subrahmanyam stressed the need for adapting to non-tariff barriers like the European Union's Carbon Border Adjustment Mechanism (CBAM) and fostering private investments in infrastructure through streamlined legal processes.
Addressing concerns regarding NTBs such as CBAM, which imposes tariffs on carbon-intensive imports like steel, Subrahmanyam underscored the necessity for industries to conform to international standards. He emphasized that NTBs are not intended to hinder trade but rather to ensure compliance with societal norms, urging industries to adapt for sustained competitiveness.
Subrahmanyam highlighted India's limited involvement in GVCs and advocated for substantial reforms to facilitate seamless cross-border movement of goods. He called for a concerted effort to align India's policies with global trade requirements, emphasizing the imperative of lower tariffs and simplified procedures to enable smoother integration into GVCs.
In advocating for an open trade environment, Subrahmanyam cautioned against protectionism and urged India to pursue more free trade agreements (FTAs) with key partners. Emphasizing the need for private sector participation in infrastructure development, he stressed the importance of improving contract management and expediting legal processes to attract private capital into the sector.
Subrahmanyam's remarks underscore the importance of policy reforms to enhance India's competitiveness and foster greater integration into global supply chains, signaling a proactive approach towards addressing evolving trade dynamics and infrastructure challenges.
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