V. ANANTHA NAGESWARAN, Chief Economic Advisor (CEA), says that boosting domestic income generation, as well as production, are the only ways to combat trade restrictions. The Economic Survey 202425, presented in the Parliament on January 31, made a case for reducing the regulatory burden. The pitch found an echo in the Union Budget a day later. Donald Trump's reelection as the 47th US President was followed by a series of levies and tariffs on other countries. He imposed 25% tariffs on imports from Mexico and Canada, and an additional 10% on China. He has also said the US would impose 100% tariffs on BRICS nations, including India, if they move to replace the US dollar in global transactions. In the backdrop of an increasingly unstable global order, the CEA explains how India could safeguard its interests, in an interaction with Business Today, conducted a day before the Budget. Edited excerpts:

The big message resonating from the Survey was the call for deregulation in India.

We had flagged it already in the Survey that we brought out in July 2024. This Survey takes it to the next level by exploring specific dimensions in different sectors.

We are not following the global template or global debate, we are simply talking about what is necessary for India, which is something that we have flagged even earlier. Which specific actions will follow because of this is of course, not just up to the Union government alone, but as the Survey makes it clear, much of the action must be in the domain of state governments as well.

But nonetheless, I think the actions that need to follow rest with the government agencies across the country. It will be difficult for me to speculate on how these actions will happen and who will take the lead, because some states are already doing that.