- One of the most defining initiatives undertaken by the Union Government led by Prime Minister Narendra Modi is the thrust placed on Atmanirbhar Bharat, encouraging domestic industries to come forward to spruce up various economic verticals that are critical for the growth of the country. Mind you, India is still a country largely relying on Agriculture with manufacturing struggling to take off on expected lines. However, the services industry has seen admirable growth over the years in line with the global trends. What must be worrying the policymakers is the consequences of the import tariff imposed by Donald Trump after warning the global leadership of the impending move. And India is in the firing line too. A 25% tariff sits over us.
PC: Aatmnirbhar Sena
- The moot point to ponder over here is how India will fare in the foreseeable future if the anticipated trade talks do not go India’s way, leading to a logjam that will serve little of our interests. High tariffs or not, self-sufficiency in critical areas must be a national imperative from now on. Period. Make no mistake, people can be self-sufficient. Look not far from the Sentinelese in the Andamans. But such living is extremely limiting. That’s why all great nations have pursued trade, although not as a dogma in the modern way. Ancient Romans were big traders. Millennia later, Mussolini declared Italy would manage alone, only to concede as oil imports rose: let us not delude ourselves about autarky.
PC: The Times of India
- As Trump continues lighting tariff fires well into the first year of his second term, he has not declared autarky or self-sufficiency as his economic goal, but his actions are tending in that direction. He wants the US to make everything from chips to ships; buy little and sell a lot. The problem with America’s protectionist turn is that it affects the global order. When the largest economy and market raises barriers for sellers, the whole free trade edifice is at risk. India has been especially stung by Trump’s tariffs. Notably, PM Modi flagged the resultant uncertainty and urged Indians to buy swadeshi. It does not signal India’s retreat into its pre-91 walled garden, but a pragmatic pause. Globalisation may pick up pace again or not. Why?
PC: LinkedIn
- The world is shifting from open to managed trade. India will have to rethink its strategy in that case. The ease of buying everything from computer chips to warplanes – Trump’s been pushing the F-35s at India – in the 21st century can lull nations into a false sense of security. But China and America’s recent actions are a wake-up call. Worryingly, India is a laggard in manufacturing semiconductors and fighter planes – the air force is currently depleted – and needs to catch up in the field of drones now. Then there are so many high-tech articles of civilian use that we don’t make. Almost all specialized medical equipment is imported and contributes to the high cost of treatment. India must become a global manufacturing hub expeditiously. There’s no other way.
