India is exploring various strategies to reduce its trade deficit, which has been exacerbated by rising import costs and stagnant export growth.
Key measures include enhancing domestic manufacturing capabilities through Production Linked Incentive (PLI) schemes, promoting local industries, and diversifying supply chains to lessen reliance on imports, particularly from countries like China. Additionally, the NITI Aayog has initiated studies to develop comprehensive action plans that focus on boosting exports and aligning trade strategies with geopolitical shifts, aiming for a more balanced trade landscape in the future.
Citations:
[1] https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1882133
[2] https://economictimes.indiatimes.com/news/economy/foreign-trade/niti-aayog-initiates-study-to-develop-action-plan-to-bridge-indias-trade-deficit-with-china/articleshow/104695895.cms
[3] https://www.economicsobservatory.com/how-is-indias-trade-landscape-shaping-up-for-the-future
[4] https://www.piie.com/blogs/trade-and-investment-policy-watch/three-ways-reduce-trade-deficit
[5] https://www.iatp.org/agricultural-trade-standards-within-ipef
[6] https://www.iddri.org/sites/default/files/import/publications/id-012010_ramdasi.pdf
[7] https://www.elibrary.imf.org/view/book/9781484339749/ch006.xml
[8] https://www.tridge.com/news/israel-seeks-to-increase-wheat-production-re-vffsoz