Modi & Trump giving their economies self-inflicted wounds: Jairam
The ongoing trade tensions between the United States and China have sent shockwaves across the global financial markets, with the Sensex and Nifty crashing in India. The announcement of new tariffs by the White House has caused widespread panic, leading to a sharp decline in stock prices and a sense of uncertainty among investors. Amidst the chaos, Congress leader Jairam Ramesh has come down heavily on Prime Minister Narendra Modi and US President Donald Trump, accusing them of 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 remarks come as the Sensex opened over 3,900 points lower, while the Nifty opened over 1,000 points below. The Indian rupee also hit a fresh low, trading at 74.85 against the US dollar.
Jairam Ramesh’s comments are not without merit. Both Modi and Trump have been known for their protectionist policies, which have led to a rise in tariffs and trade tensions. The US-China trade war, which began in 2018, has been a major source of concern for global investors, and the recent escalation has only added to the uncertainty.
Modi’s government has also been criticized for its handling of the economy, with many economists warning of a slowdown due to the government’s fiscal and monetary policies. The current account deficit has been rising, and the rupee has been under pressure due to a decline in foreign capital inflows.
Trump’s tariffs have also been a major source of concern for Indian businesses, which rely heavily on imports from China. The imposition of tariffs on Chinese goods has led to a sharp rise in prices, making it difficult for Indian companies to compete in the global market.
The impact of the tariffs has been felt across various sectors, including technology, automotive, and textiles. Many Indian companies have already started feeling the pinch, with some even announcing job cuts and production slowdowns.
The global market crash has also led to a decline in investor confidence, with many institutions and individual investors withdrawing their funds from the market. The sharp decline in stock prices has also led to a sense of panic, with many investors trying to sell their shares at any price.
In the midst of the chaos, Jairam Ramesh’s comments have sparked a debate about the impact of protectionist policies on the economy. Many economists and analysts have argued that protectionism is not the solution to the economic problems facing India and the US, and that it can only lead to a decline in economic growth and employment.
The Indian government has been implementing various measures to boost economic growth, including cuts in corporate taxes and an increase in public spending. However, many experts believe that more needs to be done to address the underlying structural issues in the economy.
The US government has also been implementing various measures to address the economic slowdown, including tax cuts and increased spending. However, many experts believe that the government’s policies have not been effective in addressing the underlying issues in the economy.
In conclusion, Jairam Ramesh’s comments are a stark reminder of the dangers of protectionism and the need for a more nuanced approach to economic policy. Both Modi and Trump need to rethink their policies and work towards finding a solution that benefits all stakeholders, including investors, workers, and consumers.
News Source:
https://x.com/Jairam_Ramesh/status/1909116322992009326
