Photo: CFP

 
India's trade strategy could fall behind in global markets without increased exports to China and tariff cuts on imported raw materials, warned the head of an Indian government policy think tank on Monday, Reuters reported.

With Asia set to drive global growth, engaging with China is essential to boost India's manufacturing exports, said B.V.R. Subrahmanyam, CEO of NITI Aayog, a government policy think tank in India, while releasing the quarterly Trade Watch report, according to Reuters.

"If you don't focus on Asia, if you are not able to sell much to China, it is pointless because it's a $15 trillion economy. You can't avoid that economy," he said at a press briefing, underscoring China's critical role in India's exports.

India's exports to China fell 7 percent in 2024 to $15.1 billion, while imports rose 10 percent to $109.4 billion on higher shipments of items such as electronic goods and chemicals, according to the report.

"The most incremental growth in trade over the next 20 years would come from Asian countries. We are currently stuck with old markets but there is a growing market in Asia where we need to enhance our presence," Subrahmanyam said, Indian media outlet The Print reported.

In addition, the Indian think tank's report called for lowering import tariffs on raw materials. According to the report, India's position remains very limited in large-demand items such as electronic circuits, petroleum oil, gold, and medicines. 

By comparison with China, the Indian think tank report noted that India's share in world merchandise exports increased from 1 percent to 2 percent between 2005 and 2024, while China's has more than doubled from 7 percent to 15 percent.

Subrahmanyam recommended focusing on improving competitive manufacturing while also opening up markets to allow free flow of trade. "If you try to protect [industries/sectors] by cutting out imports, you will not be able to export either," he said, noting that China is the biggest exporter of the world and yet also the second largest importer.

China-India ties have seen significant improvements recently. Indian Prime Minister Narendra Modi attended the Shanghai Cooperation Organization Summit 2025 in Tianjin from August 31 to September 1. This is the Indian prime minister's first visit to China after seven years.

Global Times