Ajay Srivastava On India’s Tariff Strategy: Balancing Growth, Trade Deals, Trump’s Impact & More

Siddharth Zarabi, Group Editor, Business Today, speaks with Ajay Srivastava, Founder, Global Trade Research Initiative, in this compelling episode of Easynomics, delving into India's evolving trade playbook amid a volatile global environment.

The conversation kicks off with India’s recent trade restrictions on Bangladesh—retaliation against Dhaka’s import curbs—impacting nearly $700 million of exports to India. Srivastava decodes the strategy and what it signals about India's assertive trade posture.

A key highlight is the India-UK Free Trade Agreement signed on May 6, 2025. The deal aims to double bilateral trade from $60 billion to $120 billion by 2030, promising to dismantle trade barriers and boost investment. While widely celebrated, Srivastava urges caution. Drawing lessons from India’s past FTAs with ASEAN, Japan, and South Korea, he warns of asymmetric benefits and highlights risks to local manufacturing—especially in the auto sector.

As Trump’s aggressive tariff regime fuels de-globalization, India is recalibrating. Srivastava explains why reciprocity must guide future deals, especially with the US, and how India’s approach to China remains tactical and guarded.

His core message: FTAs are no substitute for building globally competitive products. India's trade success will hinge not on signatures, but on substance.