India Must to do “Whatever It Takes” to Attract Multinationals Leaving China Amidst Trade War With US, Says Panagariya

Former head of NITI Aaayog Arvind Panagariya on Wednesday (26 June) said that the escalation of the trade war between the United States (US) and China had provided an opportune time for India to attract the large multinationals looking for alternative locations outside China, reports The Hindu BusinessLine.

The eminent economist was speaking at a panel discussion organised by the Consulate General of India in New York when he stressed that India should do "whatever it takes" to bring the multinationals coming out of China to the Indian shores.

The former NITI Aayog vice-chairman also underscored that the US was asking India to open up its markets which is a good thing for India. He stressed that rather than using tariffs, India can use the exchange rate to its advantage.

“Let the rupee depreciate a bit, it will open the door for your exporters, while it also compensates for the tariff liberalisation. This is exactly what we did in the 1990s,” Panagariya said, adding that this will help make Indian goods much more attractive and boost exports.