India Must Invest In Technology, Cost Efficiency & Domestic Capabilities For Global Competitiveness: GTRI Chief

ENA Sectors 2025-10-23 15:58:41 New Delhi, Oct 23 (KNN) Ajay Srivastava, Founder, Global Trade Research Initiative (GTRI), told ANI in an exclusive telephonic interview that as global economic growth slows and trade dynamics shift, India needs to go beyond traditional export strategies and strengthen long-term competitiveness through technology, cost efficiency, and domestic capabilities. Srivastava emphasised that India should prioritise lowering production costs, simplifying regulations, and accelerating ease of doing business, particularly in logistics, compliance, and taxation. He advocated a dual approach of attracting foreign technology through joint ventures while simultaneously investing in reverse engineering and product localisation, noting that what India consumes, it must also be able to make and export, especially in sectors like electronics, machinery, and digital technologies. On ongoing trade talks with the United States, Srivastava said that while no official announcement has been made, both sides have indicated progress in advanced discussions. India is assessing sectoral risks and preparing to mitigate potential fallout by diversifying away from US markets and enhancing domestic competitiveness. Regarding trade agreements with the UK and EU, Srivastava confirmed that the India-UK FTA has been signed and is pending ratification in the British Parliament, while the EU deal is in advanced negotiation stages with most chapters close to closure. These agreements, he noted, would open new markets, boost investor confidence, and facilitate supply chain integration with Europe. Srivastava highlighted the impact of global financial conditions on India, cautioning that US rate hikes could lead to capital outflows, pressure on the rupee, a widening current account deficit, and tighter liquidity. Managing currency volatility and maintaining export momentum will require steady macroeconomic management and strong domestic growth drivers. He dismissed the view that India is disadvantaged by staying out of trade blocs like RCEP and CPTPP, pointing out that nearly 80 percent of global trade still occurs at non-preferential tariff rates. He argued that India should instead focus on enhancing export competitiveness, logistics efficiency, and ease of doing business. On strategic direction, Srivastava called for an assertive approach: India should use this no-rules phase to rebuild the foundations of competitiveness across industry, agriculture, and services, including investments in green and digital innovation, manufacturing scale, and secure supply chains. Addressing the trade deficit with China will require large-scale reverse engineering, technology adaptation, and supply chain localisation, particularly in electronics, machinery, and chemicals. Over time, such capability-building would narrow the trade gap and establish India as a credible global supplier. He also raised concerns over the EUs Carbon Border Adjustment Mechanism (CBAM), which could act as a carbon tariff on Indian exports like steel and aluminium from 2026. Srivastava warned that India should not finalise its trade agreement with the EU until transitional arrangements are fair and domestic climate efforts are recognised. To move beyond raw materials and low-value manufacturing, Srivastava urged coordinated action by government and industry. The government should provide a stable trade policy, faster clearances, and targeted incentives, while the private sector should invest in R&D, design, branding, and technology partnerships to create globally competitive products. (KNN Bureau) 43863 https://knnindia.co.in/news/newsdetails/sectors/india-must-invest-in-technology-cost-efficiency-domestic-capabilities-for-global-competitiveness-gtri-chief 2025-10-23 15:58:41 knnindia.co.in India Must Invest In Technology, Cost Efficiency & Domestic Capabilities For Global Competitiveness: GTRI Chief