Effects of Trade, Investment, and Industrial Policies in India

by Arvind Subramanian, Peterson Institute for International Economics

February 12, 2014

Congress should exercise care in rendering unilateral verdicts on Indian trade and investment policies and avoid making judgments based on sectoral interests that carry the risk of punitive actions. Given the potential for further integration, as India’s growth revives, the shared security and strategic interests between the two countries and the likelihood of political change in India, the focus should be on building a framework to address frictions and revive cooperation. Moving toward an eventual free trade agreement can provide such a framework.

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