NITI Aayog CEO BVR Subrahmanyam on Friday expressed confidence that some positive news on India’s proposed Bilateral Trade Agreement (BTA) with the US will come out by the end of November. Speaking at ‘CNBC-TV18’s Global Leadership Summit 2025- 2nd Edition’, Subrahmanyam also said by the end of November, the National Manufacturing Mission will be up and running.
“I think things have been a bit difficult with the United States, and I think a reset is being tried. The trade negotiations are on… Hopefully, by end of the month, we may hear some news on that front,” he said.The CEO noted that New Delhi continues to attract a steady stream of foreign investors.” You got American companies opening global capability centres in India. You do not see anybody listening.” So that basically means the fundamental attraction of India will trump everything else,” Subrahmanyam said. His remarks assume significance as the US is putting pressure on India to stop buying crude oil from Russia.
The US, on October 22, imposed sanctions on Russia’s two largest crude oil producers, Rosneft and Lukoil, barring all American entities and individuals from conducting business with them. The US has imposed 25 per cent tariffs on India as a penalty for purchasing oil from Russia. It is over and above the 25 per cent reciprocal tariffs on Indian goods entering American markets.
Overall, Indian goods are attracting a steep 50 per cent additional import duties in the US. Subrahmanyam noted that there were many certainties after the Second World War, which is no longer the case. “So the world is in flux where trade is flat, FDI is flat or declining,” he said, referring to trade-related worries after the imposition of tariffs by US President Donald Trump on trade partners.
While observing that the world does not know how to handle this, Subrahmanyam said that the world is heading where low growth is a norm.” And in all this, India is a standout case. I mean, it is the brightest spot in the global economy, and that is what makes it important,” he said.
The CEO pointed out that India is bright because it has size, it has a market, and it has innovative talent.” Given that, I think India will be a pole which will attract everybody else. So rather than us being forced to make choices, others will be compelled to actually reach out to India.”
And I think that is the sweet spot India is in. So it is not necessary for India to take sides between the US and BRICS,” he said. According to him, people will cut their own cloth to adjust to India.”We are doing very good because there are strong inherent strengths.
And I think if you have to live in the slightly more turbulent times, be it war, be it economy, be it tariffs, build up your internal strengths,” Subrahmanyam said. He said the more India builds up its internal strength, the more the world will actually look at New Delhi far more favourably.
Referring to the recent reform measures announced by the government, Subrahmanyam said the biggest reform measure announced by the government in this year’s Budget, the National Manufacturing Mission, will be up and running by the end of November.”
The National Manufacturing Mission is going to transform India’s manufacturing landscape. “It is going to be a very different approach, quite different, not throwing money alone, but actually focusing on building capabilities,” he said. The government has been working to increase the share of manufacturing in India’s GDP to 25 per cent from 15-17 per cent currently.
Responding to a question on India’s re-engagement with China, Subrahmanyam said large economies in the world are important, so ‘we will end up having some economic relation with them’.”If that country (China) is 20 per cent of the world economy, you can not shut off 20 per cent of the world economy. That is reality, whether we like it or not. Maybe it is not our choice,” he said.
According to him, they still end up being the largest import source for India because of the capabilities they have built up.” So I think we will be engaging with them,” the NITI Aayog CEO said. Subrahmanyam explained that when Prime Minister Narendra Modi talks about Swadeshi, he is not talking about protectionism.” What he is talking about is, you know, secure yourself from surprises and self-reliant when necessary,” he said.