United States Tariff on India and Russia
On July 30, the US president announced a 25% tariff on India along with a penalty for purchasing military and energy supplies from Russia. Trump described India's economy as "dead," a statement that sparked varied reactions.
Economic Growth and Challenges
Despite criticisms, India's economy is far from "dead." It has grown significantly over the years, becoming 12 times its size since 1995. However, several challenges persist:
- Post-2011-12, growth rates slowed to around 6%, failing to match the pre-2008-09 financial crisis surge.
- India's GDP is projected to reach $4.1 trillion by this financial year's end, showing slower growth compared to China's historical growth rates.
- India's global trade share stands at 1.8% for goods and 4.5% for services.
- Manufacturing has underperformed, growing slower than agriculture, showing a need for sectoral protection.
Social and Economic Inequities
- Despite GDP growth, wealth distribution is skewed, with 24% below the World Bank poverty line.
- Inequality and poverty remain significant issues, with a rising disparity in human development metrics like health and education.
- Unemployment is high, especially among educated individuals, and female economic participation is low, with poor job quality and stagnant wages.
