NITI Aayog’s Suman Bery Says India Must Cut Tariffs—Here’s Why
India is aiming for a 7% economic growth rate, with NITI Aayog Vice Chairman Suman Bery advocating for a more competitive trade policy to drive long-term expansion. According to Bery, lowering import tariffs could help India attract foreign investment, strengthen manufacturing, and improve its position in global trade networks.
The Case for Lower Tariffs
Bery emphasized that while India has made significant economic progress, high import duties remain a challenge for businesses looking to compete globally. He argued that reducing tariffs would make Indian industries more competitive, encourage technology transfers, and boost exports by integrating the country deeper into global supply chains.
His comments align with India’s broader economic strategy, which includes ‘Make in India’ and ‘Atmanirbhar Bharat’ (Self-Reliant India). However, Bery pointed out that true self-reliance does not mean isolation from international markets—instead, India must embrace trade liberalization while ensuring domestic industries remain strong.
Balancing Protectionism and Global Competitiveness
While lower tariffs could benefit industries that rely on imported raw materials and advanced technology, some sectors—such as agriculture and small-scale manufacturing—have traditionally favored protectionist policies. These industries fear that increased foreign competition could disrupt local businesses.
Bery acknowledged these concerns but stressed that India’s long-term economic strength depends on its ability to compete globally. With evolving supply chains and shifting international trade policies, India must decide whether protective barriers or open-market competition will best serve its future growth.
India’s Growth Ambitions and the Road Ahead
As one of the fastest-growing major economies, India is betting on structural reforms, digital transformation, and trade liberalization to sustain strong GDP growth. With policymakers debating the role of tariffs in India’s economic strategy, the government faces a crucial challenge: ensuring foreign investment and global competitiveness while protecting domestic industries.
The outcome of this debate could shape India’s economic trajectory for years to come, determining whether it cements itself as a global trade powerhouse or struggles to balance growth with protectionism.
