Need sharper trade focus on Asia, neighbours: NITI CEO

Says no sector should be protected and markets need to be opened up globally

- DHRUVAKSH SAHA

At a time when India is struggling to clinch a trade deal with the US, NITI Aayog Chief Executive Officer (CEO) B V R Subrahmanyam on Monday batted in favour of a sharper Asia focus — including China — in the country's trade strategy, along with stronger trading arrangements with neighbouring nations.

"Focus on Asia big time. There is no escaping that. If you are not able to sell much to China, it's pointless, because it's $18 trillion — you can't avoid that economy. You should be able to compete and sell. Good countries have trade surpluses in China... If you are competitive, they will buy your stuff," Subrahmanyam said during the launch of the Aayog's Trade Watch quarterly report, which featured an analysis of India's leather and footwear trade.

Signalling that the US' 50 per cent tariffs on Indian goods are unlikely to create a major disruption till Christmas, the NITI Aayog CEO, however, said that 'summer' is going to be an issue if both countries do not work out a trade deal.

Noting that India "missed the bus" vis-à-vis rivals like Vietnam when factories and jobs were shifting around the world, due to high tariffs imposed on inputs with a preponderance to protect large domestic firms, the CEO stressed this has hurt the competitiveness of labour-intensive sectors like footwear.

Subrahmanyam asserted that no sector should be protected and markets need to be opened up and competitive globally. "You should be able to sell as you import. If you try to protect by cutting out imports, you will not export either and then you will become more and more backward. The world's largest exporter China, is also the world's 2nd largest importer," he added.

Subrahmanyam said most countries have maximum trade with their neighbours.