Domestic champions, global laggards

Though the Trump tariffs represent unilateral action by the United States and do not adhere to the global trade principles of the World Trade Organization, they have also spurred major soul-searching in India about what the country can do to become more globally competitive.

- PROSENJIT DATTA

Industrial associations, corporate leaders, and senior economists have all called for major next-generation reforms in areas including land acquisition, power costs, taxes, compliance red tape, and labour laws—all of which would lead to a substantial improvement in the ease of doing business, while also enhancing the basic competitiveness of Indian companies.

Meanwhile, policymakers have their own views. Union Commerce Minister Piyush Goyal observed that India's 1.4-billion-strong domestic market has become a cosy comfort zone, providing good profits to Indian businesses—and they do not feel the need to venture out in search of opportunities around the globe.

Mr Goyal's observation should not be dismissed as mere pique. To a large extent, it is true that large Indian manufacturing-led business houses are more comfortable expanding into multiple industries and playing in the domestic market rather than seriously making a big export foray. While many Indian brands are well known, none can be called a true global champion.