Amid heightened global uncertainty triggered by U.S. trade policies, India is expected to emerge “relatively better,” according to Shamika Ravi, Member of the Prime Minister’s Economic Advisory Council (EAC-PM). She emphasised that India will appear stronger due to its stable macroeconomic indicators and large economy, which serve as key buffers against global protectionism.“We are going to be the least affected,” she told CNBC-TV18, contrasting India’s domestic demand-driven economy with China’s export-led model and repressed domestic market.
As a late-industrialising nation, Ravi said India faces strategic, long-term challenges, with global dynamics often stacked against it. “This is just another episode we have to manage. Tariffs are only one instrument; there are many others that countries use,” she noted, pointing out that leading economies have grown increasingly protectionist over the past decade — a trend that predates the Trump era.
On the economic front, Ravi expressed optimism about inflation, citing a structural shift in the consumption basket. “Inflation is down for all the right reasons. Food is not as large a component anymore, so there’s scope for further rate cuts and a reduction in the cost of capital.”While stressing the need for India to stay steady and focused, she said the country should structurally move away from visible instruments like tariffs, which offer only momentary support. Instead, India should encourage innovation and global competitiveness through R&D and reoriented subsidies. “We may need to lean more towards export subsidies or broader regulatory support as part of a strategic realignment,” she concluded.(Edited by : Akanksha Upadhyay)
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