News

NITI Aayog CEO BVR Subrahmanyam on Friday said that the ongoing US–India trade negotiations may see a breakthrough by the end of the month, while underlining the need to lift the country’s investment rate to 35–36 per cent of GDP to sustain high growth, IANS reported.

"Hopefully, by the end of the month, we may hear some news on that front,” he said at a media event, adding that the negotiations are on track. Subrahmanyam announced that the National Manufacturing Mission will be operational by November, proposing sectoral clusters across 15 sectors and 75 locations to create globally competitive manufacturing hubs.

He said India must raise its investment rate to 35–36 per cent of GDP annually to maintain a growth rate of 8–9 per cent, compared with the current level of around 30–31 per cent.

Highlighting India’s economic resilience, he said the nation remains the “brightest spot in the global economy,” adding that other countries will be compelled to engage with India given its size, market depth, innovation capacity, and talent pool.

Also Read: India-US trade talks ‘going on very well’: Piyush Goyal on negotiations with Washington

The NITI Aayog CEO emphasised the importance of policy consistency, openness, and skill development to achieve developed-nation status.

“Even if other nations impose tariffs, India must stay a world-class, open economy,” he said, stressing that India should continue to focus on long-term competitiveness rather than protectionism. Calling the National Manufacturing Mission the “biggest announcement in the last budget,” Subrahmanyam reiterated that India’s policy focus should remain on skilling, education, and governance reforms.

Subrahmanyam underscored the importance of human capital in India’s growth story. “If I had just one rupee to invest, I’d put it on skilling and education,” he said, pointing out that Indian students average six to seven years of schooling compared to 13–14 years in South Korea.

He also noted that foreign investors are increasingly drawn to India’s cost competitiveness and expanding market, but cautioned that bureaucratic hurdles must be reduced to enhance ease of doing business, reaffirming the government’s vision of “minimum government, maximum governance.”

Also Read: India, New Zealand close to finalising Free Trade Agreement: Piyush Goyal

Earlier this week, Union Commerce Minister Piyush Goyal hinted that the India–US Bilateral Trade Agreement was progressing well but admitted that “many sensitive and serious issues” remain unresolved.

“Talks are going on very well. There are many sensitive issues, many serious issues, so naturally, it takes some time,” Goyal told ANI when asked for an update on the negotiations.

So far, five rounds of talks have been completed since March, with negotiators from both sides holding their latest virtual discussion on October 23. The agreement, formally proposed in February 2025, aims to more than double bilateral trade from the current USD 191 billion to USD 500 billion by 2030. Trade relations have faced fresh challenges after US President Donald Trump imposed 25 per cent tariffs on Indian goods from August 1, later raising them to 50 per cent citing India’s continued imports of Russian oil.