In a more mercantilist world, a clear pattern is emerging in India’s trade policy strategy: if companies or countries want freer access to the big and growing markets of the world’s fifth-biggest economy, they must offer a quid pro quo.
Switzerland and Tesla Motors last week each managed to get India to lower its high, jealously guarded tariff walls and offer improved access to its market of 1bn-plus people.
On March 10, Switzerland, along with Norway, Iceland and Liechtenstein, finally managed to sign a free trade agreement between their European Free Trade Association and India, after 16 years and 21 rounds of talks. Separately, India’s government signed off on a plan to lower import taxes on some higher-priced, imported electric vehicles.