NITI Aayog CEO B.V.R. Subrahmanyam on Friday said that ongoing trade negotiations between India and the United States could witness a breakthrough by the end of the month. Speaking at a media event in Mumbai, he added that India must raise its investment rate to sustain its current economic momentum and meet long-term growth targets.
“Hopefully, by the end of the month, we may hear some news on that front,” Subrahmanyam said, noting that talks were progressing positively. He emphasised that maintaining policy consistency and deepening engagement with global partners were essential to strengthening India’s economic position.
The NITI Aayog chief revealed that the National Manufacturing Mission, announced in the previous Union Budget, would become operational by November. The initiative proposes the creation of sectoral clusters across 15 industries and 75 locations to establish globally competitive manufacturing hubs.
Subrahmanyam underscored the need for India to increase its investment rate to 35 to 36 per cent of GDP to achieve sustained growth of 8 to 9 per cent annually. Currently, the investment rate stands at around 30 to 31 per cent, he said.
He described India as the “brightest spot in the global economy,” highlighting the country’s strong fundamentals, market depth, and innovation capabilities. “Other nations will be compelled to engage with India due to its size, talent pool, and economic potential,” he remarked.
Calling for sustained openness and consistency in policymaking, Subrahmanyam said that India should remain an open economy despite global trade barriers. “Even if other nations impose tariffs, India must stay a world-class, open economy,” he added.
The CEO also reiterated the government’s commitment to reducing bureaucratic hurdles and enhancing the ease of doing business. Citing the principle of “minimum government, maximum governance,” he said simplifying administrative processes was crucial for attracting foreign investment.
He identified skilling and education as key drivers of India’s future economic strength. “If I had just one rupee to invest, I’d put it on skilling and education,” Subrahmanyam said, pointing out that Indian students, on average, receive six to seven years of schooling, compared to 13 to 14 years in South Korea.
Subrahmanyam concluded by reaffirming that India’s policy direction, focused on manufacturing expansion, investment growth, and human capital development, would determine the country’s journey toward achieving developed-nation status in the coming decades.
