Comment: India’s lack of trade policy will dampen economic growth.

Even in New Delhi, I’m sure there are people who understand the potential of this moment as multinationals are looking to reorient their supply chains to reduce their reliance on China.

After all, a key argument for shifting investment into India is that India is a more reliable partner for the West. That’s why we’ve started working on several new trade agreements, including one with the European Union.

Competition with Southeast Asia and China

However, as this latest document demonstrates, this broader understanding has little impact on the formulation or implementation of trade policy. We are not looking for ways to build trust with trading partners like Japan. Nor do we focus on how to share the burden of sourcing and supply to promote sharing economy security.

Instead, the best we can offer is an insincere incentive for manufacturers to move their operations to India. If the US is planning around $40 billion and we can leave up to $10 billion in semiconductor subsidies, that’s not a game we can win.

What worries Indians most is that, after all, this attitude is that the Indian government does not trust the Indians. Indian politicians fear greater economic integration because they are not sure India can compete with its rivals.

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