Hard times are blessings in disguise

India's economy is facing the challenge of tariff hikes from the United States. India will have to be prepared to change many economic policies to meet the new situation. Despite the threat, there are examples for India to emulate. European countries, including Germany, which were devastated in World War II, and the Asian country Japan, have emerged as major economic powers in the world today. It is something that India should contemplate and learn. It is only during a crisis that we find our true capabilities to withstand and revive.

US President Trump is not only a politician but also a real estate mogul. He is playing business with tariffs, which are an economic tool. As part of this, a 50 per cent tariff has been imposed on 55.8 per cent of products exported from India. In addition to the 25 per cent additional tariff announced on Indian products, an additional 25 per cent tariff was imposed as retaliation for buying Russian oil. The impact will be felt soon on the Indian economy.

India's GDP growth rate of 6.5 per cent is expected to decline to 5.5 per cent. To avoid this, India's domestic production and sales must increase. The announcement to eliminate two GST slabs was made prudently, keeping the US threat in mind. When taxes are reduced, the prices of goods will decrease, and sales will increase. Along with this, the domestic market will expand further. India's population growth will be beneficial in such cases. When the American market shrinks, India will be forced to explore the market opportunities of other countries to reduce its impact. This will open the way for new friendships with many countries.

India is a rising economic power today. It is no secret that many countries envy the sudden rise of a former British-ruled nation. The most envious among the list is China, as it fears losing clout if underdeveloped countries shift allegiance to India. To topple India's chances, communist China tried for an altercation at the border, which morphed to a full-blown escalation five years ago. However, the neighbours ended up facing humiliation as they miscalculated the prowess of the Indian armed forces.

Prime Minister Modi should try new avenues to keep the economy afloat and to make real the big target of pushing India to a developed country. The mission will be arduous, but PM Modi has already promised that he would never sacrifice the interests of the country's farmers to please the Western masters.