India must accelerate its efforts to sign more free trade agreements (FTAs) and reduce tariffs to enhance its global competitiveness, asserted BVR Subrahmanyam, CEO of Niti Aayog, at the CII Annual Business Summit. Speaking to industry leaders, Subrahmanyam emphasized the importance of not shielding any sector from international competition, highlighting that confidence in India's capabilities is crucial for competing on a global scale.

Subrahmanyam stressed the need for India to integrate more deeply into global value chains, which necessitates significant policy changes. "To get into global value chains means a fundamental change in a lot of things. It means low tariffs, low procedures, and no protectionism," he stated. By lowering trade barriers and simplifying processes, India can better position itself in the international market, attracting more investments and fostering economic growth.

Furthermore, Subrahmanyam highlighted the necessity of reforms in the financial services sector. He called for the establishment of large, globally competitive banks akin to JP Morgan and Citibank. "We need much bigger banks, we need much more global players and we need a financial sector which has the muscle to service firms not just in India but across the world," he said. This vision entails a forward-looking approach to financial policy, aiming to create robust institutions capable of supporting domestic and international businesses.

Drawing a parallel to the transformative economic reforms of 1991, Subrahmanyam noted that 90 percent of today's major Indian companies owe their growth to those pivotal changes. This historical perspective underscores the potential impact of current and future reforms on the nation’s economic landscape.

In tandem with Subrahmanyam's remarks, Finance Minister Nirmala Sitharaman also addressed the summit, emphasizing the need to boost the manufacturing sector. She advocated for increasing India's share in the global value chain as part of the 'Atmanirbhar Bharat' (self-reliant India) initiative. Sitharaman underscored the policy support necessary to achieve this objective, highlighting the government's commitment to strengthening the industrial base and promoting self-reliance.