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 crash in stock prices. The Indian market has not been spared either, with the Sensex opening over 3,900 points lower and the Nifty opening over 1,000 points below. Amidst the chaos, Congress leader Jairam Ramesh has come down heavily on Prime Minister Narendra Modi and US President Donald Trump, saying that both leaders are experts in giving their economies self-inflicted wounds.
In a scathing tweet, Jairam Ramesh 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 comment is a clear indication that he believes that the tariffs imposed by the US on India and the retaliatory measures taken by India are the main reasons behind the market crash.
The US had earlier imposed tariffs on Indian goods worth $5.6 billion, citing concerns over India’s trade policies. India had retaliated by imposing tariffs on 28 US products, including almonds, apples, and walnuts. The US had also threatened to impose tariffs on Indian steel and aluminum, which could have a significant impact on India’s economy.
The Indian government had announced a package of measures to mitigate the impact of the tariffs, including a cut in corporate tax rates and an increase in the allocation for the National Small Savings Fund. However, the measures may not be enough to counter the impact of the tariffs, and the market crash is a clear indication of the panic that has set in.
The crash in the global markets is not limited to the Indian market alone. The US market has also taken a beating, with the Dow Jones Industrial Average plummeting by over 700 points. The European markets have also been affected, with the German DAX index falling by over 4%.
The tariffs imposed by the US are seen as a protectionist move aimed at protecting American industries. However, experts believe that the move could have far-reaching consequences, including a trade war and a slowdown in global economic growth.
The Indian government had earlier said that it was willing to engage in talks with the US to resolve the trade dispute. However, the US had refused to engage in talks, citing India’s refusal to make concessions on its trade policies.
The market crash has raised concerns over the impact of the tariffs on the Indian economy. The country’s GDP growth rate has already slowed down to 7.1% in the April-June quarter, and the tariffs could further exacerbate the situation.
The Indian government had earlier estimated that the tariffs could lead to a loss of up to 0.2% of the country’s GDP. However, the actual impact could be much higher, depending on the extent to which the tariffs are implemented.
In conclusion, the market crash triggered by the tariffs imposed by the US and the retaliatory measures taken by India is a clear indication of the chaos that can be caused by protectionist policies. The Indian government and the US administration need to engage in talks to resolve the trade dispute and avoid a trade war. The global economy is already facing challenges, and protectionist policies could further exacerbate the situation.
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