Economist Mahendra Dev has outlined India’s smart four-point plan to neutralize tariff threats while maintaining a solid 7.4% growth trajectory this year. In his latest analysis, Dev paints an optimistic picture of India’s economy, even as protectionism rises worldwide.
Pillar one: Market diversification. India is pivoting from saturated Western markets toward high-growth regions. ‘ASEAN and Africa offer untapped potential for our service exports,’ Dev explained, citing data showing a 15% YoY increase in non-traditional trade partners.
Enhancing ‘Make in India’ forms the second strategy. PLI schemes are supercharging sectors like mobiles and EVs, with Apple alone shifting substantial production to Indian shores. This reduces vulnerability to import duties and currency fluctuations.
Thirdly, diplomatic agility through FTAs. ‘Strategic partnerships will bypass tariff walls,’ Dev said, pointing to the recent India-UAE CEPA as a model that boosted bilateral trade by 20% within months.
The final element emphasizes resilient infrastructure. Massive investments in ports, logistics, and 5G networks are streamlining supply chains, making Indian goods more competitive globally.
Dev’s forecast comes against a backdrop of US tariff hikes and EU carbon border taxes. Yet, India’s 8% agricultural growth, stable rupee, and surging remittances provide buffers. Corporate capex is also awakening, fueled by easing interest rates.
Critics argue services sector dominance masks manufacturing gaps, but Dev counters with employment data showing 2 crore new jobs created last year. India’s strategy blends pragmatism with ambition, ensuring sustained growth in a fragmented world order.