THIRUVANANTHAPURAM: The Trump administration’s tariffs on imports to the US give a competitive edge to India in certain areas, opined Dr V Anantha Nageswaran, Chief Economic Advisor to the Government of India. He said this citing the higher tariffs for imports from China.
“The tariffs for India are on hold till July 9 and that for China till May 12. Right now, whatever was announced on April 2 by President Trump gives India certain tariff advantages compared to other countries. If your competitor is going to face a higher tariff, then you are at an advantage,” he said. Nageswaran was delivering a talk on “Global economic trends: India’s challenges and prospects” at the Raj Bhavan here on Tuesday.
“If the tariffs remain after July 9, India will have an advantage. It is an opportunity for us to improve and promote labour-intensive manufacturing like footwear, textiles, leather products, and chemicals,” he said, adding that the country could reclaim its lost market share.
The world is realising the vulnerabilities of depending on China for imports, he said. “So India can develop itself into a more reliable trusted alternative source in the world,” he said.
There was uncertainty following Brexit in 2016, global financial crisis around 2008, and during the pandemic in the 2020-21 period. “Now the level of uncertainty is rising and may well go above the previous highs during the pandemic or the Russia-Ukraine war. In three decades we may be heading to the most uncertain phase in the world,” he said.
Global FDI flow is coming down as a consequence of rising uncertainty. “But the good news is that India remains a top destination for FDI. In 2024-25 we attracted 81 billion dollars of gross FDI. So India is likely to be an exception to this declining trend,” he said.
India faces a challenge amid the worldwide clamour for switching to renewable energy sources. “The western world became developed using oil, coal and gas, and now in the name of global warming and climate change, we are being denied that. Today everything is electrified and we need more energy and we are told you cannot use the cheapest forms of energy like coal because they are polluting,” he said.
“The global warming discourse has become louder and India has to find a way to balance the two. The government is taking efforts to improve the efficiency of thermal sources with supercritical and ultra supercritical power plants,” he said. Nuclear power is also being explored. Renewable energy sources will continue to increase, but only in proportion. A diversified energy production will provide baseload power and ensure grid stability, he said.
Governor Rajendra Arlekar, in his address, said the Raj Bhavans have become Lok Bhavans now. “Earlier, Governors’ residences were secluded. It saw a change after we decided that Raj Bhavans are not for the Governor alone but Lok Bhavans of the people of the state,” he said.