Arvind Panagariya, the 16th Finance Commission chairman, told the Times of India that a weaker rupee is a strategic advantage for India’s exports and called for tariff reductions and a review of bilateral investment treaties during the Kautilya Conclave in New Delhi.
Panagariya noted that the rupee’s recent depreciation has lifted export competitiveness, with India’s manufacturing sector growing 10% over the last three years and the economy projected to expand at 7‑8% this year, while inflation and the current account deficit have remained under control.
He urged the Ministry of Finance to slash tariffs on goods that have become export‑competitive and to eliminate quality‑control orders that he says stifle domestic firms, arguing that many such orders are protectionist and lack enforcement capacity.
Panagariya also called for a comprehensive review of India’s bilateral investment treaties, noting that foreign investors look to these agreements for stability and that competitors like China and Vietnam have already amended theirs to attract capital.
He warned that the U.S. might not repeat Trump’s tariff tactics, but said the weakening of WTO discipline and the failure of the appellate body already compromise trade fairness, making reform urgent.
Following his speech, the Ministry of Finance is slated to convene a working group to assess tariff structures and negotiate revised bilateral investment treaties, with a draft policy proposal expected by the end of September.