India’s path to enduring global competitiveness hinges on trade openness and reforms, a new Systematics report asserts. Released alongside the India-US interim trade deal, it calls for urgent action to future-proof the economy.
Core recommendations include fixing inverted duty regimes, optimizing logistics and customs to cut raw material costs, fostering assembly-based industries for mass production and employment, curbing protectionism, proliferating FTAs, ramping up R&D, and streamlining land acquisition, labor laws, and skill development.
This integrated approach catapults India into high-tech manufacturing, deepens GVC integration, and buffers against aggressive trade barriers. Long-term rivalry with global players becomes feasible.
Details of the 2026 bilateral accord reveal balanced concessions. India liberalizes duties on US exports: industrial items, DDGS, sorghum, nuts, fruits, soy oil, and alcohols. America imposes 18% on Indian apparel, leather, plastics, chemicals, and machines, eyeing zero duties on drugs, jewelry, and aircraft spares post-compliance.
US goals center on fair trade and barrier removal. India benefits from sub-18% effective US tariffs, outpacing competitors. This fuels job-rich sectors and flagship programs like Atmanirbhar Bharat.
Aviation gets a lift with duty exemptions on planes/parts; auto parts secure quotas. These gains promise robust expansion in strategic industries, cementing India’s rise.