NITI Aayog

India and the United States are reportedly in the final stages of negotiating a long-awaited trade agreement, which could be sealed by the end of November, according to NITI Aayog CEO B.V.R. Subrahmanyam. The proposed pact, aimed at deepening economic cooperation between the two nations, is expected to address tariff barriers, technology transfers, and market access issues.

A recent NITI Aayog report highlights the growing dominance of India’s services sector as a major driver of employment and economic expansion. The study reveals that the sector contributes significantly to GDP growth and job creation, particularly in areas such as information technology, finance, healthcare, logistics, and tourism.

NITI Aayog, India's premier policy think tank, has unveiled a proposal aimed at enhancing the tax landscape for foreign companies operating in the country. The initiative suggests introducing an optional, industry-specific presumptive taxation scheme designed to reduce litigation, simplify compliance, and provide greater tax certainty. This move is expected to bolster investor confidence and attract higher-quality foreign direct investment (FDI), aligning with India's vision of becoming a developed nation by 2047.

Artificial Intelligence (AI) is poised to become a key driver of India’s economic growth, with NITI Aayog projecting a potential contribution of $600 billion to the nation’s GDP by 2035. The report emphasizes that AI adoption across sectors such as healthcare, agriculture, financial services, and manufacturing can unlock productivity gains, enhance innovation, and create high-value employment opportunities. Strategic investments in AI infrastructure, research, and regulatory frameworks are crucial to realizing this potential.

India is intensifying efforts to align economic expansion with environmental sustainability, as outlined in NITI Aayog’s latest policy framework focused on low-carbon growth. The think tank underscores the need to integrate green technologies, enhance energy efficiency, and strengthen renewable adoption to balance development with climate imperatives. With global scrutiny on emission reduction targets and India’s pledge toward net zero by 2070, the strategy seeks to steer industries, states, and institutions toward a resilient and resource-efficient pathway.

The recent escalation of tariffs by the United States on select imports has sparked global concerns over trade disruptions, but India may be well-positioned to turn this development into an advantage. According to G20 Sherpa and former NITI Aayog CEO Amitabh Kant, the tariff hike could open new avenues for Indian exporters in sectors where global supply chains are seeking diversification. He emphasized that with the right policy framework, competitive manufacturing, and targeted incentives, India can strengthen its position as a reliable trade partner to advanced economies.

Former NITI Aayog Vice Chairman Rajiv Kumar has called for a reassessment of India’s current restrictions on Chinese investments, arguing that such limitations may be counterproductive to the country’s long-term economic interests. He emphasized that while national security concerns must remain paramount, a more calibrated approach could attract greater foreign direct investment (FDI), enhance supply chain efficiency, and improve India’s global competitiveness.

India’s transition to electric mobility has taken a sharper turn with NITI Aayog advocating for a clearly defined National Electric Vehicle (EV) policy that includes measurable adoption targets and fiscal clarity. The think tank has urged the government to establish a uniform roadmap for EV growth across states, pushing for harmonized regulatory frameworks, production-linked incentives (PLIs), and coordinated infrastructure planning.