'Don’t go Trump’s way': Montek Singh Ahluwalia urges open trade, warns 6.5% growth not enough at BT India @100 Summit

Trump’s tariff war may have shattered the global trade playbook, but for India, it’s also a moment to reset—and not by following the U.S. down the path of protectionism. Speaking at the BT India@100 Summit, Montek Singh Ahluwalia, former Deputy Chairman of the Planning Commission, said the real opportunity lies in aligning with a more open, multipolar trade system—one that excludes the U.S. if necessary.

“What President Trump has done is dismantle the rule-based global trading system,” Ahluwalia said. “It may not hurt the U.S. yet, but the full impact of these tariffs is still to be felt. The bigger question is—what should we do?”

His answer: don’t imitate. “Just because the U.S. is acting like a bully doesn’t mean we should too. The EU, UK, Japan—they’ve all essentially gone along with the U.S. That leaves us with a choice: do we join the club or chart our own course?”

Ahluwalia called for deeper integration with the non-U.S. world. “We need to close an FTA with the EU, pursue the UK deal, and seriously consider joining the CPTPP—an open, rules-based trade bloc that includes Japan, Korea, Australia. That would send a clear message that India remains committed to global trade.”

He rejected the idea that trade deals should only be signed with non-competitors. “That’s not how global value chains work. Competitors trade with each other—they just operate at different levels of the chain.”

On China, Ahluwalia acknowledged the security tensions but cautioned against economic isolation. “Strategic concerns may limit certain imports, but we shouldn’t adopt Trump’s mistake of obsessing over bilateral trade deficits. That earns you zero marks in Economics 101.”

He emphasized the moment’s urgency. “We’re not in a 1991 crisis, but 6.5% growth won’t deliver on jobs or Viksit Bharat. We need 9% growth, and we need new strategy. Protectionism isn't it.”