Welcoming the U.S. decision to pause Trump-era tariffs, economist Shruti Rajagopalan calls for systemic reforms and urges India to shift from protectionism to long-term trade competitiveness.
New Delhi, April 13: Economist and senior research fellow Shruti Rajagopalan has welcomed the United States’ 90-day pause on Trump-era trade tariffs but emphasized that short-term relief must lead to long-term systemic reform in global trade. Speaking at the Carnegie Global Tech Summit, Rajagopalan highlighted the urgent need for cooler heads and rational policymaking in an increasingly fragmented global economy.
“A 90-day pause is a welcome announcement from the U.S., but overall, cooler heads need to prevail. We need a systemic solution—not a retreat from the old global trade order,” she said.
Rajagopalan stressed the importance of returning to negotiated tariff structures that promote openness, adding that exceptions should only apply to sectors critical to national security and sovereignty.
Turning the focus to India, she called for urgent domestic reforms:
“India needs clear bilateral free trade agreements and must systematically reduce tariffs and protectionism. High tariffs hurt our export competitiveness.”
She argued that India’s aspirations under campaigns like Make in India or Manufacture in India cannot be realized without integrating deeply into the global trading ecosystem.
“We need strong trading relationships and must avoid tariff inversion. Reducing import tariffs can dramatically improve export potential, which is in our own national interest—regardless of what other countries do,” Rajagopalan said.
Concluding her remarks, she urged Indian policymakers to commit to long-term low and predictable tariff policies to help Indian businesses stabilize supply chains and compete globally.