NITI Aayog CEO BVR Subrahmanyam said that India should have strong trading relations with its neighbouring countries. The NITI Aayog specially emphasised the need to have strong relations with neighbouring China, which has a staggering economy of $18 trillion.
Subrahmanyam also indicated that after the recent GST revision, another set of reforms is expected to be announced before Diwali. He said the NITI Aayog member Rajiv Gauba-led committee has already submitted its first set of reports on these reforms.
Lesson from other countries
Niti Aayog CEO stated that while the entire European Union trades 50 per cent within itself, Bangladesh is India’s 6th biggest trading partner and Nepal used to be in the top 10, stressing on the need to increase trade with neighbouring countries.
“It is a misfortune that we are in a very difficult geography. Who are the biggest trading partners of the US? Mexico and Canada. It is natural. If you do not have strong neighbourhood trading arrangements, you actually are at a disadvantage…If you are competitive, they will buy your stuff,” he said.
Chinese investment
Responding to a question on lifting curbs on investments from China, he did not give a direct answer but observed that China is a major supplier for India.
“Focus on Asia big time. There is no escaping that. If you are not able to sell much to China, it is pointless, because it is USD 18 trillion economy-you cannot avoid that economy. You should be able to compete and sell. Good countries have trade surpluses with China,” he told reporters after launching ‘Trade Watch Quarterly’ here.
The NITI Aayog CEO said India missed the bus vis-a-vis Vietnam when factories and jobs were shifting around the world.