India Eyes Trade Advantages with US Policies

16th Finance Commission chairman Arvind Panagariya expressed optimism that India will emerge stronger from current tariff uncertainties, especially if it secures a bilateral trade deal with the US. Speaking at Ashoka University’s Growth Conference, he highlighted how US trade restrictions on countries like China and Vietnam could create new opportunities for India.

Panagariya stressed that a trade agreement with the US would not only benefit India directly but could also pave the way for future deals with the EU and UK. He noted that the US-China trade conflict appears long-term, and India could gain from the US desire to shift supply chains. The agreement, expected by fall 2025, may also drive India to undertake key land and labour reforms to boost manufacturing.

Looking ahead, he reaffirmed India’s aim to become a developed nation by 2047, requiring steady per capita income growth of over 7% annually—a target he believes is achievable.