Title: Modi & Trump giving their economies self-inflicted wounds: Jairam
The global markets have been sent into a tailspin after the White House announced new tariffs, leading to a massive crash in the Indian stock market. The Sensex opened over 3,900 points lower, while the Nifty opened over 1,000 points below. Amidst the chaos, Congress leader Jairam Ramesh has come out swinging, criticizing Prime Minister Narendra Modi and US President Donald Trump for their economic policies.
In a scathing tweet, Jairam said, “It’s no wonder that Mr. Modi and Mr. Trump describe themselves as good friends. Both are experts in giving their economies self-inflicted wounds.” His statement is a reflection of the growing concern among economists and policymakers about the impact of protectionist policies on the global economy.
The recent tariff announcement by the White House is just the latest in a series of economic decisions that have raised eyebrows around the world. Trump’s “America First” policy has led to a trade war with several countries, including China, the European Union, and Mexico. Similarly, Modi’s government has been accused of imposing protectionist policies, including the Goods and Services Tax (GST) and the demonetization of high-denomination currency notes.
The economic policies of both Modi and Trump have been criticized for being short-sighted and lacking in nuance. While they may have promised to benefit their respective countries, they have instead led to a decrease in global trade, a rise in unemployment, and a slowdown in economic growth.
One of the main concerns about Trump’s tariffs is that they are not targeted at specific industries or companies, but rather at entire countries. This has led to a broad-based impact on global trade, with countries being forced to retaliate against US goods. Similarly, Modi’s GST has been criticized for being complicated and having a disproportionate impact on small and medium-sized enterprises (SMEs).
The impact of these policies on the Indian economy has been significant. The country’s GDP growth rate has slowed down to 5.8% in the first quarter of 2020, the lowest in over six years. The manufacturing sector has been particularly hard hit, with production declining by 1.3% in August 2020.
The economic policies of Modi and Trump have also had a negative impact on the global economy. The World Trade Organization (WTO) has warned that the ongoing trade tensions could lead to a global recession. The WTO has also criticized the US for its protectionist policies, saying that they are a threat to the global trading system.
In conclusion, Jairam Ramesh’s statement is a reflection of the growing concern among economists and policymakers about the impact of protectionist policies on the global economy. The economic policies of Modi and Trump have been criticized for being short-sighted and lacking in nuance. While they may have promised to benefit their respective countries, they have instead led to a decrease in global trade, a rise in unemployment, and a slowdown in economic growth.
It is essential for governments around the world to adopt a more nuanced and balanced approach to economics. This includes reducing protectionist measures, promoting free trade, and investing in education and infrastructure. Only then can we ensure that the global economy grows in a sustainable and equitable manner.
Source: https://x.com/Jairam_Ramesh/status/1909116322992009326
