- Donald Trump’s unpredictability and single-minded attention to press ahead with disruptive moves must be viewed as an opportunity for India to not only push ahead with countering the fallout of the tariff war unleashed on us, but also resolutely ensure local consumption on the back of self-reliance-led initiatives takes definite shape to usher in desired changes. Call it a coincidence or the need of the hour, or a hunch/anticipation, Prime Minister Narendra Modi had announced during his Independence Day speech about reducing the GST slabs from the existing four to two. Prima facie, the thrust being envisaged is to encourage local consumption by easing the burden of people on several day-to-day usable products to a great extent, to spur growth.
PC: MSN
- Indubitably, Trump’s illogical and ill-advised tariff moves have ensured that the Indian leadership to press ahead with the much-needed GST reforms. Thus, PM Modi’s recent address to the nation, highlighting the significance of reduced GST rates and slabs, laid further emphasis on self-reliance, which is an urgent necessity across sectors. The themes PM picked up, GST reforms and atmanirbharta, speak to what’s needed to keep our economy robust in the face of global headwinds. With Indians getting almost 70% of the H-1B visas that were issued in 2024, the country will be the one most impacted by a one-time $100,000 fee that exceeds the median annual salary of India’s H-1B visa-holders.
PC: The Times of India
- Yes, this is on the heels of Trump imposing a 50% tariff on Indian exports to the US and revoking the Chabahar sanctions waiver. But there’s turbulence from other directions as well, whether it’s China reminding India of its rare earth vulnerability or Europe also taking an anti-immigration turn. Deep and wide as different countries’ economic ties remain, clearly a new phase of globalization is now underway, where India really must watch out for itself in a way that’s perhaps never been needed since the Liberalization of 1991. It’s true that India’s large domestic market is what provides relative resilience to external shocks.. The test of GST reforms as they become operational will be what savings they pass on to consumers, and thus spur demand.
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PC: Business Standard
- As for meaningful movement in the direction of atmanirbharta, that will, again, as PM’s speech underlines, need Centre and states to work together. States governed by different political parties will need to act in concert. From chips to rare earths to pharma to defence, India’s dependencies in sector after sector are all traceable to its abysmal R&D ecosystem. The private sector has shown a confoundingly poor appetite for this spend. So, pretty pledges aside, GOI must ensure something fundamentally shifts in the research and innovation space. This is what govts of China, South Korea, and Taiwan got right, and India must as well. Mind you, external uncertainties leave us no other option. India must be prepared and self-reliant to face any challenges forthcoming.
