While an FTA is a long shot, the starting steps include India improving at the domestic regulatory level while the Trump administration will have to ease up on the multilateral international stage.
Is a Big Bang Budget, Aimed at Smoothening India’s Warts, Prudent in an Uncertain Macro Environment?
While a temporary deviation in the 3% fiscal deficit target looks reasonable, especially when considering rural distress and GST-fuelled disruption, it would not be wise.
The trade deficit widened to $14.02 billion last month from $8.98 billion in September.
Gold is widely seen as a safe investment option in times of economic crisis. So is the gold import surge a sign of falling confidence in the Modi government’s economic management?
Back in April, Trump had called the five-year-old KORUS trade pact “horrible” and “unacceptable” and had said he would either renegotiate or terminate it.
Inflationary concerns aside, we also have to realise that fiscal deficits are always accompanied by trade deficits.
The economy requires a massive increase in government expenditure to overcome the drastic impact of demonetisation. But will this cause foreign capital to depart?
India should look to tap increasing Chinese foreign investments and imports, as well as make travelling in India more attractive for Chinese tourists.
While questions over America’s persistently high current account deficit remain, Trump’s economic revival plan misdiagnoses the problem and wrongly ignores global market logic.
India has often missed the bus in terms of timing its economic moves in the past. It cannot afford to overlook an enhanced commercial engagement with China, even as it courts the United States, Japan, South Korea and other partners from beyond its neighbourhood.
Increased investment from China, especially in the infrastructure sector, is the only way that India can reduce its unsustainable trade deficit with that country.