India must deepen trade ties with neighbours, including China: NITI Aayog CEO

India must strengthen its trading ties with neighbouring countries, including China, a USD 18 trillion economy that cannot be ignored, NITI Aayog CEO BVR Subrahmanyam has said.

He also hinted that a new round of economic reforms is likely to be unveiled before Diwali, following the rollout of GST 2.0. Subrahmanyam noted that a committee headed by NITI Aayog member Rajiv Gauba has already submitted its first set of reports outlining these proposed reforms.

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He further said that while the entire European Union trades 50 per cent within itself, Bangladesh is India's 6th biggest trading partner and Nepal used to be in the top 10, stressing on the need to increase trade with neighbouring countries.

Urges focus on Asian markets

“It is a misfortune that we are in a very difficult geography. Who are the biggest trading partners of the US? Mexico and Canada. It is natural. If you do not have strong neighbourhood trading arrangements, you actually are at a disadvantage...If you are competitive, they will buy your stuff,” he said.

Responding to a question on lifting curbs on investments from China, he did not give a direct answer but observed that China is a major supplier for India.

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“Focus on Asia big time. There is no escaping that. If you are not able to sell much to China, it is pointless, because it is USD 18 trillion economy, you cannot avoid that economy. You should be able to compete and sell. Good countries have trade surpluses with China,” he told reporters after launching ‘Trade Watch Quarterly’ in New Delhi.

The NITI Aayog CEO said India missed the bus vis-a-vis Vietnam when factories and jobs were shifting around the world.

(With agency inputs)