According to Arvind Virmani, a member of NITI Aayog, free trade agreements with industrialised nations will make it much easier for India to join the supply chains of multinational corporations and will dramatically increase exports.
The global inflation and oil prices are anticipated to cool over the next year, according to Virmani, who outlined the opportunities and challenges facing India as it works to become a developed country by 2047. This will have a positive impact on the Indian economy and lead to an expected increase in private sector capex.
“MNCs have been at the forefront of every significant export boom since the 1980s, whether it was in Asia, Malaysia, Thailand, or South Korea. Given that MNC supply networks already account for around 50% of global exports, FTAs with the predicted that industrialised nations will considerably simplify India’s admission into their MNC supply chains, promote labor-intensive manufacturing, and boost exports.Due to recent supply shocks and the direct threat from China that India faces, Virmani believes it is crucial to diversify supply chains away from China. We are already overly integrated into the Chinese supply chain, he remarked, which is the major cause.
