Rajeev Juneja is the President of the PHD Chamber of Commerce and Industry (PHDCCI). Juneja is a first- generation entrepreneur with experience in the pharmaceutical industry and is the Vice – Chairman and Managing Director of Mankind Pharma, a leading pharmaceutical company.
Over the years, Juneja has passionately led diverse functional areas of the business and has applied his expertise to deliver high-quality pharmaceuticals and affordable medicines. He has been the recipient of several awards, such as the ‘Entrepreneur of the Year’ and ‘Best Design in Healthcare’. Mankind Pharma Limited also won the ‘Best Pharma OTC Company of the Year’ in 2018. In an exclusive interview with Nikhil Vyas, Juneja spoke about the Indo-US trade deal, deals with the European Union (EU) and the United Kingdom (UK), and the latest General Budget. Excerpts of the interview:
Q: What is your first comment on the Indo-US trade deal? How did the deal fructify?
A: The India-United States trade deal represents a strategic shift from uncertainty towards well-designed economic engagement. The current deal is targeted towards tariff rationalisation, supply-chain cooperation, and market access in select sectors. From India’s perspective, the deal signals intent to integrate more deeply with the technology ecosystem. The agreement’s significance lies more in predictability by reducing uncertainty around duties, regulatory cooperation, and dispute management to improve the investment climate. Tariff disputes stretched beyond anybody’s benefit. India will gain particularly in labour-intensive product exports.
Q: Has India compromised on agriculture and dairy?
A: The Government of India’s statement after the India-US tariff deal is clear: we will support farmers and dairy farmers come what may. The Ministry of Commerce and Industry has clarified that agriculture and dairy are sensitive sectors for India. Tariffs have been selective and carefully designed, and key agricultural products are kept out of the agreement altogether. Overall, the statement should be read as a clear signal that trade liberalisation will not come at the cost of farmers’ incomes and that the government will step in with policy and financial support whenever needed. While marginal adjustments may exist, they do not change the underlying protection. This approach is well aligned with India’s long-standing position in multilateral and bilateral trade negotiations on agriculture.
Q: Do you think the slashing of tariffs on Indian products will make our products cheaper in the American market as compared to those produced in other South Asia and Southeast Asian nations?
A: Tariff reductions will improve the price competitiveness of Indian goods in the US market. Products with high tariff elasticity – such as textiles, gems and jewellery, and certain engineering goods – are likely to see clearer gains. Lower landed costs will improve margins and allow price reductions relative to competitors. Take the case of textiles and apparel. Textiles and apparel emerge as a clear winner. Indian exports in cotton garments, home textiles, and made-ups will face moderate US tariffs and will be competitive with suppliers from Bangladesh, Vietnam, and Cambodia. India’s advantage lies in integrated cotton supply chains.
Q: How will the deal impact India’s overall economy, industry sector, and markets?
A: At the macro level, the deal’s immediate GDP impact is likely to be modest, but given its importance in the medium to long term, it signals stability and openness, which will support investment sentiment. Industrially, the agreement encourages diversification toward higher-value manufacturing and strategic sectors. Overall, the deal strengthens medium-term growth drivers rather than delivering short-term macro acceleration.
Q: What difference do you find in the deal with the United States and the one signed with the European Union (EU)?
A: The US deal is sector-specific, while the agreement with the European Union is broader and more rules-based in the form of a free trade agreement. The EU deal emphasises sustainability standards, regulatory harmonisation, and labour norms. In contrast, the US approach prioritises supply chain security and strategic alignment. The EU deal offers wider market access, while the US deal is narrower but faster to implement.
Q: Do you think the deals with the US and the EU will also help India become a competitive market vis-à-vis China?
A: Together, deals with the US and EU can enhance India’s positioning as an alternative manufacturing and sourcing hub relative to China, what is called the China +1 strategy. Preferential access and strategic alignment reduce trade friction and improve investor confidence. Collectively, the US and EU deals narrow the gap by improving India’s access to demand markets. In summary, the deals improve India’s relative positioning against China, particularly as a diversified alternative.
Q: What will you say about the trade deal India signed with the United Kingdom (UK) last year?
A: The trade deal with the United Kingdom is commercially meaningful, particularly for services, skilled mobility, and consumer goods. It reflects historical trade complementarities and provides Indian exporters with preferential access to a high-income market. Sector-specific benefits-especially for SMEs and services – are notable. Key beneficiary sectors include textiles and apparel, where tariff reductions improve price competitiveness for Indian garments, home textiles, and fashion products in the UK market. India competes with suppliers from Bangladesh, Turkey, and Southeast Asia, and preferential access helps narrow cost differentials. Automobiles and auto components are another important gainer. Lower duties on Indian-made vehicles, two-wheelers, and components enhance export opportunities.
Q: How do you look at the latest Budget presented by the Finance Minister?
A: The latest Union Budget reflects fiscal consolidation with targeted support for capital expenditure. Its emphasis is on infrastructure, manufacturing incentives, and macro stability rather than broad consumption stimulus. The approach prioritises medium-term growth over short-term populism.
Q: How does the Budget help business and industry?
A : Continued government investment in highways, railways, ports, airports, logistics corridors, and power infrastructure reduces logistics and transaction costs for firms. Lower freight costs, faster turnaround times, and improved connectivity directly benefit manufacturing, construction, steel, cement , capital goods, and logistics-intensive industries. Ongoing support for sector-specific incentive frameworks, including production-linked approaches, encourage scale expansion , technology adoption, and integration into global value chains. Sectors such as electronics, pharmaceuticals, renewable energy equipment , chemicals , and advanced manufacturing will benefit from policy certainty, which is critical for long-term capital investments. Credit-guarantee mechanisms, formalisation of digital lending, and improvements in banking and non-banking credit flows help ease working-capital constraints and help MSMEs in the medium to long term. Selective rationalisation of customs duties on raw materials and intermediate goods will help lower input costs and support domestic value addition. In terms of ease of doing business, digitisation, simplified compliance, faster approvals, and regulatory streamlining will lead to improved operational efficiency.
Q: The general perception is that the Budget is not inspiring and does not have anything substantial for the common man. What is your comment?
A: The Union Budget looks at the multiplier effects of schemes through capex on key infrastructure capacity building on income and employment. A quick-fix budget is never beneficial to the common man, as it erodes long-term prospects of sustained growth. The budget laid out a sustained capex-led approach aligning with the objective of Viksit Bharat.