India's Path to Economic Growth: Navigating Tariffs and Trade Reforms

Arvind Panagariya, Chairman of the 16th Finance Commission, stresses the need for India to vigorously pursue a free trade agreement with the European Union. Addressing India's position in the global market amidst higher US tariffs, he called for immediate action on land and labor market reforms to boost growth.

During the Business Today India@100 event, Panagariya likened the current situation to India's 1991 economic crisis, urging a re-evaluation of India's growth strategies. With India's economy poised to become the third-largest by 2027, he pointed out the importance of trade diversification and reducing regulatory barriers.

Panagariya stated that while some protectionist measures exist, India remains largely open. To counter global trade tensions, he suggested leveraging Asian markets, implementing approved labor codes, and easing land reforms for urban development to enhance business operations.

(With inputs from agencies.)