V. Anantha Nageswaran Photo credit: ANI
Chief Economic Adviser (CEA) V. Anantha Nageswaran said on Tuesday that the industry needs to invest and focus on becoming more competitive.
He was responding to a question about addressing export gaps in light of the recent tariffs imposed by the US
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Speaking at Delhi University’s PGDAV College, CEA elaborated, “If you are competitive, your margin is better (then), you would be able to absorb some of the cost (yourself).
Mr. Nageswaran specifically pointed out how the domestic pharmaceutical industry dealt with the 1995-96 Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) by increasing investment in research and development (R&D), making it competitive. For context, when India joined the WTO in 1995 and became a party to the TRIPS pact, the patent regime did not generate enthusiasm among the generic drug industry at home due to affordability concerns.
Diversification, ongoing conversations
Dr. Nageswaran noted that there was a “short-term impact” on India’s export growth, particularly with the US, as a result of the tariff regime. The CEA has pursued ongoing negotiations with Washington and the diversification of export markets as potential ways to address the evolving tariff regime. On the talks with the US, CEA said, “I hope it will result in something favorable (for India) very quickly.
Emphasizing the need for diversification, he said the Indian government has concluded “enough” trade deals with other regions such as the UK and Australia and is also looking to negotiate more such deals with the European Union and Gulf countries. He added that the government has also taken short-term relief measures for exporters to help deal with cash flow problems.
“They’re unlikely to give you immediate answers next day or next week,” he said, adding: “We need to take this opportunity to do some of these things so that next time we’re not affected the way we were this time.”
No meltdown in sight
New Delhi’s purchase of Russian oil has been the biggest sticking point for a favorable trade deal with the U.S. Earlier this year, Washington imposed a 50% tariff on India, including a 25% penalty, on purchases of Russian oil as it sought to address Moscow’s actions in Ukraine. India persistently maintains cheap Russian oil as a necessity for energy security.
Published – 04 Nov 2025 19:53 IST
