Diversify exports; let US trade talks be a side show

Facing Trump tariff, India should explore Europe & China as alternative markets, says former NITI Aayog vice chief

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With US President Donald Trump's unpredictable stance on tariffs and the threat of a 50% levy on Indian goods, India's exports to the US face unprecedented challenges. Many believe this is also an opportunity for India to diversify its export markets and push forward long-pending trade reforms. Rajiv Kumar, former Vice Chairman of NITI Aayog and Chairman of Pahle India Foundation, tells Dipak Mondal that India must look to Europe and China as alternative markets. Excerpts:

The Bilateral Trade Agreement talks have been halted. The US delegation is not coming for now, and the meeting will be rescheduled for later. Given this background, where do you think the trade talks are headed?

I think we have given too much space and mind-share to these trade talks—in the media and policy circles. It feels like everything depends on them. But in today's world, we should be looking at other opportunities and developing our potential, rather than hankering after a market that's going to remain very uncertain for the next four years. You never know what the US administration will say today and do tomorrow.

My take is let's see what happens and treat it as a side show, not the main show. The real question is how to enhance our export competitiveness, expand our markets, identify key export areas, and develop policies to foster their growth. This whole situation should be an opportunity to develop a proper export strategy, instead of depending so heavily on the US.

Developing export efficiency or finding an alternative market will take time. In the short term, say if tariffs go up to 50%, how will that impact us?