Story perspectives

India Pushing Free-Trade Deals and Manufacturing to Build Resilience

By Drooid · Oct 3, 2026, 4:05 PM UTC · How we work

Summary

Story summary

Principal Secretary P.K. Mishra said India maintains strong macro fundamentals despite uncertainty.
Mishra said India is diversifying supply chains and expanding trade through additional free-trade agreements.
He added that boosting domestic manufacturing aims to reduce vulnerability to external shocks.
Mishra warned tariffs, export controls and other restrictions are now used for strategic purposes.
Mishra said linking economic policy with geopolitics and AI developments adds new uncertainty and raises resilience-building costs.

History

Historical Context

Facing a 1991 balance-of-payments crisis that left reserves for only three weeks of imports, Prime Minister P.V. Rao and Finance Minister Manmohan Singh launched sweeping liberalisation—cutting average tariffs from about 85 % to 25 % and raising foreign investment from $132 million in 1991-92 to $5.3 billion by 1995-96. Today Principal Secretary P.K. Mishra cites that legacy while urging new supply-chain diversification and free-trade pacts.

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Story summary

Principal Secretary P.K. Mishra said India maintains strong macro fundamentals despite uncertainty.
Mishra said India is diversifying supply chains and expanding trade through additional free-trade agreements.
He added that boosting domestic manufacturing aims to reduce vulnerability to external shocks.
Mishra warned tariffs, export controls and other restrictions are now used for strategic purposes.
Mishra said linking economic policy with geopolitics and AI developments adds new uncertainty and raises resilience-building costs.

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