The Goal
• India’s Foreign Trade Policy aims to (1) increase the country’s share of global trade from the current 2.1 percent to 3.5 percent and (2) double its exports to $900 billion by 2020.
• However, India faces myriad obstacles: lack of full understanding of trade policy and its potential benefits, a poorly developed manufacturing sector, unsatisfactory results from regional trade agreements, and constrained relationships, including with its main trading partners.
• India’s trade policy framework must be supported by economic reforms that result in an open, competitive, and technologically innovative Indian economy.
• The share of manufacturing in the gross domestic product needs to rise through efficient implementation of schemes such as the Make in India initiative.
• U.S. capital and innovation needs to work hand-in-hand with Indian resources and entrepreneurship.