India's Strategic Trade Moves: Balancing National Interests and Global Partnerships

India is actively pursuing a Bilateral Trade Agreement with the United States, focusing on safeguarding national interests while enhancing export capabilities. As the fifth round of negotiations unfolds in Washington, Economic Advisory Council Chair S Mahendra Dev underscores the importance of securing favorable trade terms.

In a bid to amplify domestic manufacturing, India's Production Linked Incentive (PLI) scheme is key. Targeting various sectors, it promotes local production, attracts foreign investment, and aims to augment export potential. Dev highlights studies indicating a decline in direct value addition but notes the increase in linkages with upstream industries.

Furthermore, Dev stresses maintaining a stable inflation rate within the existing framework to support sustainable growth and protect the middle class. The government's adherence to fiscal consolidation is applauded for managing fiscal deficits effectively, balancing national economic goals with global trade demands.

(With inputs from agencies.)