Speaking at the Business Today India@100 event, former G20 Sherpa and NITI Aayog CEO Amitabh Kant delivered a clear message to Indian industry: the era of protectionism is over. Kant emphasized that for India to achieve its economic potential, its industries must prioritize quality, value, and competitiveness, aiming to surpass China in the global marketplace.
Focus on Quality and Global Benchmarking
Kant, addressing a session titled ‘The Future of Make in India’, stated, “The Indian industry should forget about protectionism. They should focus on being competitive, they should focus on quality, they should focus on value, and they should focus on exports.” He highlighted that exports are unattainable without superior quality and value, urging companies to benchmark their production standards directly against Chinese manufacturing.
He cited examples of Indian conglomerates like Tata and Mahindra as companies demonstrating this potential. Kant specifically pointed to emerging sectors such as battery manufacturing and clean technology as crucial areas where India should accelerate its efforts to challenge China's dominance.
Navigating a Shifting Global Landscape
Kant also reflected on the profound changes in the global order, noting the end of the post-World War II era characterized by multilateralism and relative peace. He described a new reality marked by increased conflict in regions like Europe and West Asia, the weaponization of tariffs, and muscular industrial policies globally.
“The world that had grown on global value and supply chains has been replaced by protectionism, muscular industrial policies, retaliation in terms of policies. Tariffs have got weaponised,” Kant observed, while also acknowledging that this age will witness unprecedented productivity growth driven by artificial intelligence, an opportunity India must seize.
While commending India’s success in striking numerous trade deals, Kant issued a warning: these agreements present a dual challenge. If Indian industries do not become competitive, domestic markets risk being flooded by foreign products. Conversely, if they embrace competitiveness, these 55 markets represent a vast opportunity for Indian exports.
The Imperative for Competitiveness
The core of Kant's message underscored that India's economic future hinges not on insulating its industries, but on empowering them to thrive through innovation, efficiency, and a relentless pursuit of global standards. This strategic shift, he argued, is essential for India to accelerate its growth and secure a leading position in the evolving world economy.