India Should Uphold Strategic Autonomy While Negotiating Trade Deal with the US, Advises Amitabh Kant

India must maintain its strategic independence and resist pressure in trade negotiations with the US, according to former G20 Sherpa Amitabh Kant. Speaking at the Business Today India@100 event, Kant emphasised the importance of a long-term perspective and a calm approach. He suggested that trade uncertainties present a chance for significant economic reforms.

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On August 6, the US announced an additional 25% tariff on Indian imports, raising the total duty to 50% effective August 27. The White House cited India's continued purchase of Russian oil as the reason. Kant stated, "We should never lose our strategic autonomy. We have never lost that strategic autonomy, even during the Cold War period."

Strategic Autonomy and Economic Reforms

Kant highlighted the need for India to remain steadfast and not yield under pressure. He advised negotiating rationally and sensibly, noting there is ample time to reach an agreement before the tariffs take effect. "We still have 20 days for these US tariffs to kick in," he said.

The former NITI Aayog CEO also called for simplifying the Goods and Services Tax (GST) regime by removing unnecessary rules, especially at the state level. He pointed out that startups face delays in registration due to complex procedures. "My key message: no rules, no policies, no laws more than two pages," he added.

Tourism and Economic Growth

Kant proposed enhancing personal income tax reforms, noting significant progress has already been made. Responding to US President Donald Trump's "dead economy" remark, he asserted that India is far from it, being the fastest-growing large economy globally.

He suggested boosting travel and tourism as it is unaffected by tariffs. "We should be getting tourists from abroad because... there is no tariff," he noted. Kant stressed that each Indian state should develop its brand and promote tourism actively.

Regional Growth Opportunities

Kant mentioned that India is larger than 24 European countries combined. He believes that if 12 states grow at 10%, national growth could reach 9%. He identified growth potential in mineral-rich eastern states, alongside existing growth in southern and western regions.

"You already have growth coming from the south and west. Now the opportunity lies in the east... These are mineral-rich states. There's no reason they should not be growing at 9-10 per cent per annum," he said.

Kant's insights underscore India's need to maintain strategic autonomy while pursuing economic reforms and growth opportunities across various sectors and regions.

With inputs from PTI