{"id":51572,"date":"2025-06-23T14:37:31","date_gmt":"2025-06-23T09:07:31","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=51572"},"modified":"2025-10-07T16:03:26","modified_gmt":"2025-10-07T10:33:26","slug":"daily-editorial-analysis-23-june-2025","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/daily-editorial-analysis-23-june-2025\/","title":{"rendered":"Daily Editorial Analysis 23 June 2025"},"content":{"rendered":"<h2 class=\"feed_item_title\"><strong>Tracing a Decade of India\u2019s Growth \u2013 Achievements, Equity Concerns, and Policy Outlook<\/strong><\/h2>\n<div class=\"feed_item_content\">\n<h3><strong>Context:<\/strong><\/h3>\n<ul>\n<li>As Prime Minister Narendra Modi completes 11 years in office, this article undertakes a\u00a0<strong>macroeconomic stocktaking.<\/strong><\/li>\n<li>It compares the performance with the previous decade (2004\u20132014), and\u00a0<strong>outlines key achievements, gaps in inclusivity, and policy imperatives<\/strong>\u00a0for the future, especially in\u00a0<strong>agriculture and subsidies<\/strong>.<\/li>\n<\/ul>\n<h3><strong>Macroeconomic Growth Trajectory:<\/strong><\/h3>\n<ul>\n<li><strong>GDP growth \u2013 Nominal and PPP:<\/strong>\n<ul>\n<li><strong>In 2014<\/strong>, India\u2019s nominal GDP was<strong>\u00a0$2.04 trillion<\/strong>, rising from $709 billion in 2004 under UPA.<\/li>\n<li><strong>In 2025<\/strong>, GDP is projected at\u00a0<strong>$4.19 trillion<\/strong>, nearing Germany to become the\u00a0<strong>4th\u00a0<\/strong>largest economy.<\/li>\n<li>In purchasing power parity (<strong>PPP<\/strong>\u00a0terms), GDP grew from $2.75 trillion (2004) to $6.45 trillion (2014) to\u00a0<strong>$17.65 trillion (2025)<\/strong>\u00a0becoming the 3rd largest globally [behind China ($40.72 trillion) and the US ($30.51 trillion)].<\/li>\n<\/ul>\n<\/li>\n<li><strong>Per capita income \u2013 PPP indicator:<\/strong>\n<ul>\n<li><strong>Per capita income (PPP):<\/strong>\u00a0Rose from $2,424.2 in 2004 to $4,935.5 in 2014 and now stands at $12,131.8 in 2025.<\/li>\n<li><strong>Global rank improved:<\/strong>\n<ul>\n<li>If we compare India\u2019s per capita income (PPP) globally, its rank improved from 181st in 2004, to 166th in 2014, and\u00a0<strong>149th in 2025.<\/strong><\/li>\n<li><strong>Still lowest in G20<\/strong>, behind China ($28,978), Sri Lanka, and Bhutan, but ahead of Pakistan and Bangladesh.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><strong>Inclusivity and Income Inequality:<\/strong><\/h3>\n<ul>\n<li><strong>The Gini coefficient<\/strong>, which is a statistical measure used to quantify the degree of inequality in the distribution of income or wealth within a population, has shown\u00a0<strong>only modest shifts<\/strong>\u00a0over the past two decades.<\/li>\n<li><strong>It ranges from 0 to 1<\/strong>\u00a0(or 0% to 100%), where 0 represents perfect equality (everyone has the same income\/wealth) and 1 (or 100%) represents perfect inequality (one person has all the income\/wealth).<\/li>\n<li><strong>In 2004<\/strong>, it was 0.34 in India, in 2014 it edged up slightly to 0.35 and dropped to\u00a0<strong>0.33 in 2021<\/strong>, indicating\u00a0<strong>moderate inequality<\/strong>\u00a0in India, according to the World Bank.<\/li>\n<\/ul>\n<h3><strong>Agricultural Growth and Welfare Measures:<\/strong><\/h3>\n<ul>\n<li><strong>Agricultural performance:\u00a0<\/strong>Agriculture GDP grew at an average annual rate of\u00a0<strong>4%<\/strong>\u00a0(FY15\u2013FY25) despite consecutive droughts in 2014\u201315 and 2015\u201316, surpassing the 3.5% (FY05\u2013FY14) growth, which also witnessed a major drought in 2009\u201310.<\/li>\n<li><strong>Key welfare initiatives:<\/strong>\n<ul>\n<li><strong>PM-KISAN<\/strong>\u00a0(direct income support)<\/li>\n<li>Almost-free staple grains (rice or wheat, 5kg\/person\/month) to 800 million<\/li>\n<li>Subsidised rural housing<\/li>\n<li>Near freeze on urea prices<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><strong>Poverty Reduction Milestone:<\/strong><\/h3>\n<ul>\n<li>All these efforts have led to\u00a0<strong>a sharp reduction in extreme poverty<\/strong>\u00a0(head count ratio) at $3 per day (2021 PPP) &#8211; from 27.1% in 2011 to\u00a0<strong>just 5.3% in 2022<\/strong>.<\/li>\n<li><strong>The 80% drop<\/strong>\u00a0marks\u00a0<strong>one of the fastest and most significant falls in poverty<\/strong>\u00a0that India has achieved in any period since 1977.<\/li>\n<li>Even when measured against the\u00a0<strong>higher poverty line threshold of $4.20\/day<\/strong>\u00a0for low middle-income countries, poverty had dropped from 57.7% in 2011 to 23.9% by 2022, representing a steep 60% decline in just a decade.<\/li>\n<\/ul>\n<h3><strong>Reforming Subsidies for Sustainable Inclusion:<\/strong><\/h3>\n<ul>\n<li><strong>Food subsidy reform:<\/strong>\n<ul>\n<li>The food subsidy budget for FY26 is slated to be\u00a0<strong>Rs 2.03 lakh crore<\/strong>. Almost-free food to 800 million people despite low poverty levels.<\/li>\n<li><strong>Rationalise\u00a0<\/strong>this food subsidy by giving beneficiaries\u00a0<strong>food coupons (digital wallet)\u00a0<\/strong>to buy nutritious food \u2014 pulses, milk, eggs \u2014 from designated stores.<\/li>\n<li>The value of food coupons for the bottom, say 15% of the population, could be\u00a0<strong>Rs 700\/family\/month<\/strong>.<\/li>\n<li>This will help\u00a0<strong>plug leakages, diversify diets<\/strong>, promote nutrition, and diversify the production basket.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Fertiliser subsidy reform:<\/strong>\n<ul>\n<li>Similar rationalisation is needed for fertiliser subsidy, which is slated to claim another\u00a0<strong>Rs 1.56 lakh crore in FY26<\/strong>.<\/li>\n<li>This can be done by giving\u00a0<strong>fertiliser coupons<\/strong>\u00a0to farmers and deregulating the prices of fertiliser products.<\/li>\n<li>Farmers can use these coupons to\u00a0<strong>buy chemical fertilisers or bio-fertilisers or do natural farming.<\/strong><\/li>\n<li><strong>The imbalanced use of N, P, and K can be corrected<\/strong>, leakages plugged and innovations in products and practices promoted, only if the government deregulates this sector.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><strong>Challenges Ahead:<\/strong><\/h3>\n<ul>\n<li>The government would need to\u00a0<strong>identify tenant farmers<\/strong>.<\/li>\n<li>The task also requires\u00a0<strong>triangulation of several sets of data.<\/strong><\/li>\n<li><strong>Communicating\u00a0<\/strong>with farmers in advance and<strong>\u00a0earning their trust<\/strong>. This is a political exercise, which must precede policy change.<\/li>\n<\/ul>\n<h3><strong>Conclusion:<\/strong><\/h3>\n<ul>\n<li>The current government\u2019s 11-year record shows<strong>\u00a0strong macroeconomic performance<\/strong>, remarkable poverty reduction, and improved welfare delivery.<\/li>\n<li>However,\u00a0<strong>challenges of inclusivity<\/strong>, sustainable subsidy structures, and agri-sector reform remain critical.<\/li>\n<li>Tackling these with\u00a0<strong>targeted, tech-enabled, and politically communicative solutions<\/strong>\u00a0can\u00a0<strong>transform economic gains into equitable development<\/strong>.<\/li>\n<\/ul>\n<h2 class=\"feed_item_title\"><strong>Tracing a Decade of India\u2019s Growth \u2013 Achievements, Equity Concerns, and Policy Outlook FAQs<\/strong><\/h2>\n<\/div>\n<p><strong>Q1.<\/strong>\u00a0Examine the changes in India\u2019s GDP and its global ranking in both nominal and PPP terms since 2004.<\/p>\n<p><strong>Ans.\u00a0<\/strong>India&#8217;s nominal GDP grew from $709 billion in 2004 to a projected $4.19 trillion in 2025, making it the fourth-largest economy, while in PPP terms, it rose to $17.65 trillion, ranking third globally.<\/p>\n<p><strong>Q2.<\/strong>\u00a0How has India&#8217;s per capita income evolved in PPP terms, and what does it indicate about inclusive growth?<\/p>\n<p><strong>Ans.<\/strong>\u00a0India\u2019s per capita income in PPP terms rose from $2,424.2 in 2004 to $12,131.8 in 2025, reflecting improvement but still lagging behind most G20 and neighbouring countries, indicating limited inclusivity.<\/p>\n<p><strong>Q3.<\/strong>\u00a0Highlight the role of the Modi government&#8217;s welfare policies in poverty alleviation between 2014 and 2022.<\/p>\n<p><strong>Ans.\u00a0<\/strong>Welfare initiatives like PM-KISAN, food grain distribution, and housing support contributed to reducing extreme poverty from 27.1% in 2011 to 5.3% in 2022 \u2014 one of the fastest drops since 1977.<\/p>\n<p><strong>Q4.<\/strong>\u00a0Discuss the significance of rationalising food and fertiliser subsidies in the context of fiscal efficiency and environmental sustainability.<\/p>\n<p><strong>Ans.\u00a0<\/strong>Rationalising subsidies through digital coupons can enhance targeting, reduce leakages, diversify diets, promote natural farming, and improve environmental outcomes by reducing soil and water degradation.<\/p>\n<p><strong>Q5.<\/strong>\u00a0What challenges must be addressed for implementing targeted reforms in India\u2019s agri-food subsidy system?<\/p>\n<p><strong>Ans.<\/strong>\u00a0Reform implementation requires accurate identification of tenant farmers, data integration, stakeholder communication, and political will \u2014 areas where strong leadership and trust-building are essential<\/p>\n<div class=\"feed_item_content\">\n<hr \/>\n<h2 class=\"feed_item_title\"><strong>Lessons from Operation Sindoor\u2019s Global Outreach<\/strong><\/h2>\n<div class=\"feed_item_content\">\n<h3><strong>Context<\/strong><\/h3>\n<ul>\n<li>The April 22, 2025,\u00a0<strong>Pahalgam terror attack marked a pivotal moment in India\u2019s contemporary security\u00a0<\/strong>and foreign policy history.<\/li>\n<li>The\u00a0<strong>nation\u2019s resolute military reaction, dubbed Operation Sindoor, was swift, calibrated, and precise.<\/strong><\/li>\n<li>However,\u00a0<strong>what truly solidified India\u2019s international standing in the aftermath of the attack<\/strong>\u00a0was its proactive and coherent diplomatic campaign.<\/li>\n<li><strong>A coordinated outreach involving seven all-party parliamentary delegations to strategic countries in the Western Hemisphere reinforced India&#8217;s global narrative<\/strong>\u00a0and reaffirmed its moral and political authority on the world stage.<\/li>\n<\/ul>\n<h3><strong>The Multifaceted Nature of Indian Diplomacy Post Operation Sindoor<\/strong><\/h3>\n<ul>\n<li><strong>To Showcase Unity<\/strong>\n<ul>\n<li>One of the central strengths of India\u2019s diplomatic campaign was\u00a0<strong>the remarkable unity of purpose across political lines.<\/strong><\/li>\n<li>The\u00a0<strong>composition of the delegations,<\/strong>\u00a0featuring Members of Parliament from various states, faiths, and political ideologies,\u00a0<strong>presented a striking image of national cohesion.<\/strong><\/li>\n<li>In a world where domestic divisions often erode foreign credibility,\u00a0<strong>India&#8217;s ability to present a unified front projected gravitas and maturity.<\/strong><\/li>\n<li>This\u00a0<strong>consensus lent legitimacy and strength to India&#8217;s narrative\u00a0<\/strong>in discussions with leaders such as the President of Guyana and the Vice-President of the United States.<\/li>\n<li>When speaking as one,\u00a0<strong>India\u2019s message of self-defence, justice, and peace resonated far more effectively with international interlocutors.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>The Legitimacy and Restraint Shown During Operation Sindoor<\/strong>\n<ul>\n<li>A central goal of the outreach was to explain\u00a0<strong>the rationale and proportionality behind Operation Sindoor.<\/strong><\/li>\n<li>The\u00a0<strong>operation was framed not as a retaliatory strike<\/strong>\u00a0but as a lawful and calibrated exercise in self-defence aimed specifically at terrorist infrastructure.<\/li>\n<li>The\u00a0<strong>Indian delegations underscored the avoidance of civilian and military Pakistani casualties<\/strong>, highlighting moral restraint in the face of provocation.<\/li>\n<li>The\u00a0<strong>effectiveness of this framing became evident when Colombia,<\/strong>\u00a0after initially expressing concern about alleged civilian casualties,\u00a0<strong>retracted its statement and reiterated support for India\u2019s sovereign right to self-defence.<\/strong><\/li>\n<li>This\u00a0<strong>episode exemplifies the power of persistent, fact-based diplomacy<\/strong>\u00a0in correcting misperceptions and combating misinformation.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Calling Out Terrorism and Building Consensus<\/strong>\n<ul>\n<li>Another pillar of India\u2019s diplomacy was\u00a0<strong>exposing Pakistan\u2019s continued sponsorship of terrorism.<\/strong><\/li>\n<li>Delegations made it a point\u00a0<strong>to present verifiable evidence of cross-border terrorist activity<\/strong>\u00a0and the involvement of groups like Lashkar-e-Taiba and Jaish-e-Mohammed.<\/li>\n<li>Particularly in Washington D.C.,\u00a0<strong>these assertions gained traction even among U.S. officials who simultaneously met with Pakistani representatives.<\/strong><\/li>\n<li>The\u00a0<strong>alignment of perspectives in such crucial global capitals reflects the persuasive power<\/strong>\u00a0of India&#8217;s evidence-driven advocacy and consistent messaging.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Diplomacy Beyond Crisis: Sustained Public Engagement<\/strong>\n<ul>\n<li>The delegation\u2019s experience\u00a0<strong>also revealed a deep international appetite for Indian perspectives.<\/strong><\/li>\n<li>The\u00a0<strong>effectiveness of this engagement<\/strong>, particularly with lawmakers, think tanks, and the media,\u00a0<strong>highlighted the potential of parliamentary diplomacy\u00a0<\/strong>as an enduring tool of soft influence.<\/li>\n<li><strong>Countries like Panama, Guyana, and Colombia<\/strong>, some of which are current or future non-permanent members of the UN Security Council,\u00a0<strong>welcomed the Indian delegations with enthusiasm,<\/strong>\u00a0and in some cases, like Panama, offered explicit support for India\u2019s permanent membership in the UNSC.<\/li>\n<li><strong>This shows that consistent engagement, even with smaller or less-publicised nations<\/strong>, can yield significant strategic dividends.<\/li>\n<li>Moreover,\u00a0<strong>the importance of engaging with global media was underlined.<\/strong><\/li>\n<li>In the absence of India\u2019s narrative, misinformation and hostile narratives can dominate the discourse.<\/li>\n<li><strong>Ensuring Indian voices are heard across major global media platforms is no longer optional<\/strong>, it is essential for safeguarding national interests.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><strong>The Power of Soft Power: Culture and Connectivity<\/strong><\/h3>\n<ul>\n<li>Beyond the geopolitical and security dimensions,\u00a0<strong>the operation\u2019s name Sindoor symbolised cultural significance and emotional depth<\/strong>, especially for Indian audiences.<\/li>\n<li>Yet it\u00a0<strong>also piqued international curiosity<\/strong>, providing a platform to introduce India\u2019s cultural narratives.<\/li>\n<li>From yoga to Bollywood,\u00a0<strong>India\u2019s soft power assets were strategically employed to develop empathy and understanding.<\/strong><\/li>\n<li>These\u00a0<strong>cultural connectors proved instrumental in contextualising India\u2019s responses<\/strong>\u00a0and in humanising its geopolitical imperatives.<\/li>\n<\/ul>\n<h3><strong>Actionable Pathways for the Future<\/strong><\/h3>\n<ul>\n<li><strong>Focus on The Three T\u2019s: Tech, Trade, and Tradition<\/strong>\n<ul>\n<li>India\u2019s future global positioning rests on a triad:\u00a0<strong>technology, trade, and tradition<\/strong>.<\/li>\n<li>While its IT services have gained global recognition,\u00a0<strong>the next step involves promoting innovation in emerging fields such as Artificial Intelligence.<\/strong><\/li>\n<li>This\u00a0<strong>requires targeted diplomatic efforts<\/strong>\u00a0that highlight India\u2019s potential as a technological collaborator.<\/li>\n<li>Simultaneously,\u00a0<strong>trade diplomacy must be intensified<\/strong>, particularly in light of global economic competition with nations like China.<\/li>\n<li><strong>India must expand its trade portfolio and emphasise its reliability<\/strong>\u00a0as a democratic and rules-based economic partner.<\/li>\n<li>The s<strong>trategic convergence of these three elements, tech, trade, and tradition, offers a holistic framework\u00a0<\/strong>for India\u2019s external engagements.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Need to Heed Delegation\u2019s Recommendations<\/strong>\n<ul>\n<li>The\u00a0<strong>delegation\u2019s tour inspired a number of practical recommendations<\/strong>\u00a0for India\u2019s diplomatic future.<\/li>\n<li>First,\u00a0<strong>diplomatic capacity must be expanded in South and Central America<\/strong>\u00a0through increased language proficiency, stronger missions, and reciprocal high-level visits.<\/li>\n<li>Second,\u00a0<strong>the issue of terrorism must be persistently raised in global multilateral forums<\/strong>, including through direct engagement with the UN Secretary-General and the UN General Assembly President.<\/li>\n<li>Third,\u00a0<strong>India should cultivate stronger bilateral ties with nations like Brazil, Panama, and Guyana,<\/strong>\u00a0not only for political support but\u00a0<strong>also for strategic economic partnerships in sectors like energy and infrastructure.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><strong>Conclusion<\/strong><\/h3>\n<ul>\n<li>The aftermath of the Pahalgam attack and the\u00a0<strong>success of the Operation Sindoor diplomatic campaign showcased<\/strong>\u00a0<strong>India at its best, resolute, united, articulate, and culturally grounded.<\/strong><\/li>\n<li>This\u00a0<strong>episode offers a blueprint for future diplomatic engagements:<\/strong>\u00a0unity in action, clarity in communication, cultural resonance, and sustained outreach.<\/li>\n<li>As India navigates an increasingly fragmented and competitive global order,\u00a0<strong>its foreign policy must continue to harness the synergy of its democratic values, economic aspirations,\u00a0<\/strong>technological innovation, and timeless traditions.<\/li>\n<li><strong>The three T\u2019s are not just tools, they are strategic imperatives and with consistent effort and a coherent vision,<\/strong>\u00a0India is well-positioned to shape a more just, secure, and prosperous world.<\/li>\n<\/ul>\n<h2 class=\"feed_item_title\"><strong>Lessons from Operation Sindoor\u2019s Global Outreach FAQs<\/strong><\/h2>\n<p><b>Q1. <\/b><span style=\"font-weight: 400;\">What was India&#8217;s military response to the Pahalgam terror attack called?<\/span><\/p>\n<p><b>Ans.<\/b><span style=\"font-weight: 400;\">India&#8217;s military response to the Pahalgam terror attack was called Operation Sindoor.<\/span><\/p>\n<p><b>Q2.<\/b><span style=\"font-weight: 400;\"> What message did the all-party delegation convey abroad?<\/span><\/p>\n<p><b>Ans. <\/b><span style=\"font-weight: 400;\">The all-party delegation conveyed a message of national unity and emphasized India\u2019s legitimate right to self-defence.<\/span><\/p>\n<p><b>Q3. <\/b><span style=\"font-weight: 400;\">What are the three \u201cT\u2019s\u201d of India\u2019s global strategy?<\/span><\/p>\n<p><b>Ans. <\/b><span style=\"font-weight: 400;\">The three \u201cT\u2019s\u201d of India\u2019s global strategy are Tech, Trade, and Tradition.<\/span><\/p>\n<p><b>Q4. <\/b><span style=\"font-weight: 400;\">How did Colombia respond after India\u2019s diplomatic outreach?<\/span><\/p>\n<p><b>Ans.<\/b><span style=\"font-weight: 400;\"> After India\u2019s diplomatic outreach, Colombia retracted its initial statement and reaffirmed support for India\u2019s sovereign right to self-defence.<\/span><\/p>\n<p><b>Q5. <\/b><span style=\"font-weight: 400;\">Why is soft power important in India\u2019s diplomacy?<\/span><\/p>\n<p><b>Ans. <\/b><span style=\"font-weight: 400;\">Soft power is important in India\u2019s diplomacy because it helps create cultural connections and enhances global understanding of India&#8217;s values and intention. <\/span><\/p>\n<p><strong>Source: <a href=\"https:\/\/www.thehindu.com\/opinion\/lead\/lessons-from-operation-sindoors-global-outreach\/article69725201.ece\" target=\"_blank\" rel=\"nofollow noopener\">The Hindu<\/a><\/strong><\/p>\n<hr \/>\n<h2 class=\"feed_item_title\"><strong>Steering the Indian Economy Amidst Global Troubles<\/strong><\/h2>\n<div class=\"feed_item_content\">\n<h3><strong>Context<\/strong><\/h3>\n<ul>\n<li>The\u00a0<strong>global economic landscape is undergoing a profound transformation<\/strong>\u00a0driven by shifting trade policies, geopolitical tensions, and rising protectionism.<\/li>\n<li>The\u00a0<strong>resurgence of trade wars, reassessment of tariff structures<\/strong>, and intensified bilateral trade negotiations have ushered in a\u00a0<strong>new era of uncertainty.<\/strong><\/li>\n<li>These\u00a0<strong>developments have implications not only for trade flows but also for global financial markets<\/strong>\u00a0and long-term economic growth.<\/li>\n<li>In this rapidly evolving context,\u00a0<strong>India finds itself at a critical crossroads, facing challenges but also standing before a window of opportunity<\/strong>\u00a0to strategically reposition itself within the global economic order.<\/li>\n<\/ul>\n<h3><strong>The Current Global Trade Climate: Risks and Challenges<\/strong><\/h3>\n<ul>\n<li><strong>Rising Trade Protectionism and Tariff Uncertainty<\/strong>\n<ul>\n<li>At the forefront of this shift is the\u00a0<strong>United States<\/strong>, which,\u00a0<strong>under successive administrations, has adopted a more protectionist approach<\/strong>\u00a0to trade.<\/li>\n<li>The\u00a0<strong>review of existing trade agreements<\/strong>, imposition of reciprocal tariffs, and pursuit of bilateral rather than multilateral deals have i<strong>ntroduced significant uncertainty for trading partners.<\/strong><\/li>\n<li>For India,\u00a0<strong>this is particularly concerning as the U.S. remains its largest merchandise export\u00a0<\/strong>destination, accounting for nearly one-fifth of total exports.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Legal and Diplomatic Ambiguity<\/strong>\n<ul>\n<li>Further complicating the scenario is the\u00a0<strong>unpredictability in U.S. trade policy itself.<\/strong><\/li>\n<li>Though tariffs have been threatened, their\u00a0<strong>imposition is mired in ongoing bilateral negotiations and court decisions.<\/strong><\/li>\n<li>A\u00a0<strong>notable example is the U.S. Court of International Trade\u2019s recent intervention<\/strong>, which casts doubt over the legality of certain tariff measures.<\/li>\n<li>As a result,\u00a0<strong>Indian policymakers and exporters find themselves navigating a constantly shifting terrain<\/strong>\u00a0with little clarity on long-term scenarios.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Intensifying Global Competition and Dumping Risks<\/strong>\n<ul>\n<li>While India grapples with external uncertainty, it also faces\u00a0<strong>increased competition from other exporting nations.<\/strong><\/li>\n<li>Countries such as\u00a0<strong>China, Bangladesh, and Vietnam, traditional rivals in textile, electronics, and manufacturing sectors, may benefit from more favourable trade terms with the U.S<\/strong>. or the European Union, leaving Indian exports relatively disadvantaged.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><strong>Strategic Opportunities for India<\/strong><\/h3>\n<ul>\n<li><strong>Proactive Trade Engagements<\/strong>\n<ul>\n<li>India\u2019s\u00a0<strong>early initiation of Bilateral Trade Agreement (BTA) negotiations with the U.S. signals a proactive approach.<\/strong><\/li>\n<li>Concluding such agreements swiftly\u00a0<strong>can provide India a first-mover advantage.<\/strong><\/li>\n<li>The\u00a0<strong>BTA must be designed to secure zero-tariff<\/strong>\u00a0access in key export sectors while cautiously liberalising sensitive domestic industries.<\/li>\n<li>It is also\u00a0<strong>vital to protect India\u2019s robust services exports<\/strong>\u00a0and address non-tariff barriers (NTBs) through mutual recognition agreements.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Diversifying Trade Partnerships<\/strong>\n<ul>\n<li>The\u00a0<strong>successful finalisation of the Free Trade Agreement (FTA) with the United Kingdom\u00a0<\/strong>is a promising development.<\/li>\n<li>India\u00a0<strong>must now pursue other strategic FTAs,<\/strong>\u00a0especially with the European Union and Australia, through Comprehensive Economic Cooperation Agreements.<\/li>\n<li>These\u00a0<strong>partnerships will broaden market access and reduce overdependence\u00a0<\/strong>on any single export destination.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><strong>The Way Ahead<\/strong><\/h3>\n<ul>\n<li><strong>Safeguarding Against Dumping<\/strong>\n<ul>\n<li>Given the elevated risk of product dumping,\u00a0<strong>India must enhance its import monitoring systems.<\/strong><\/li>\n<li>Swift application of\u00a0<strong>trade remedial measures<\/strong>, including anti-dumping duties, is essential to protect vulnerable domestic sectors from unfair competition.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Boosting Public Investment<\/strong>\n<ul>\n<li>Maintaining a\u00a0<strong>robust pipeline of public capital expenditure<\/strong>\u00a0is critical to sustaining economic momentum.<\/li>\n<li>Such investments not only\u00a0<strong>buffer against external shocks<\/strong>\u00a0but also stimulate private sector participation, laying the groundwork for long-term growth.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Accommodative Monetary Policy<\/strong>\n<ul>\n<li>With inflationary pressures easing,\u00a0<strong>India\u2019s central bank should continue an accommodative monetary stance.<\/strong><\/li>\n<li><strong>Lower interest rates<\/strong>\u00a0would support industrial output and encourage both domestic and foreign investment.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Attracting Foreign Investment<\/strong>\n<ul>\n<li>India must position itself\u00a0<strong>as a viable alternative for global companies seeking to diversify away from China<\/strong>\u00a0and other East Asian economies.<\/li>\n<li><strong>A targeted approach,<\/strong>\u00a0focusing on strategic sectors like electronics, electric mobility, and green energy, could attract large-scale foreign direct investment (FDI).<\/li>\n<\/ul>\n<\/li>\n<li><strong>Structural Reforms: The Long-Term Imperative<\/strong>\n<ul>\n<li>Finally,\u00a0<strong>structural reforms must proceed without delay.<\/strong><\/li>\n<li>The\u00a0<strong>Production-Linked Incentive (PLI) schemes,<\/strong>\u00a0while commendable, should be expanded to include emerging sectors such as Internet of Things (IoT) devices,\u00a0<strong>hearables, wearables, and battery-related materials.<\/strong><\/li>\n<li>These\u00a0<strong>reforms will help boost domestic manufacturing<\/strong>, reduce import dependence, and enhance India\u2019s competitiveness.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><strong>Conclusion<\/strong><\/h3>\n<ul>\n<li><strong>India is navigating a turbulent phase in global trade<\/strong>, characterised by volatility and unpredictability.<\/li>\n<li>However,\u00a0<strong>this disruption also offers a rare opportunity<\/strong>\u00a0for strategic repositioning.<\/li>\n<li><strong>By proactively negotiating trade agreements, diversifying markets<\/strong>, etc,\u00a0<strong>India can not only mitigate current risks but also emerge as a pivotal player<\/strong>\u00a0in the global supply chain ecosystem.<\/li>\n<li>With a calibrated approach and visionary policy execution,\u00a0<strong>India stands poised to convert global headwinds into a catalyst for long-term economic ascendance.<\/strong><\/li>\n<\/ul>\n<h2 class=\"feed_item_title\"><strong>Steering the Indian Economy Amidst Global Troubles FAQs<\/strong><\/h2>\n<\/div>\n<\/div>\n<p><b>Q1.<\/b><span style=\"font-weight: 400;\"> Why is the U.S. market important for India\u2019s exports?<\/span><\/p>\n<p><b>Ans. <\/b><span style=\"font-weight: 400;\">The U.S. market is important because it accounts for nearly 20% of India&#8217;s total merchandise exports, making it India\u2019s largest export destination.<\/span><\/p>\n<p><b>Q2. <\/b><span style=\"font-weight: 400;\">Which sectors in India are most affected by U.S. tariff uncertainties?<\/span><\/p>\n<p><b>Ans. <\/b><span style=\"font-weight: 400;\">Sectors such as marine products, apparel, carpets, gems and jewellery, pharmaceuticals, auto components, and electronics are most affected by U.S. tariff uncertainties.<\/span><\/p>\n<p><b>Q3. <\/b><span style=\"font-weight: 400;\">What global trend is disrupting trade stability?<\/span><\/p>\n<p><b>Ans. <\/b><span style=\"font-weight: 400;\">The global trend of rising protectionism, including trade wars and shifting tariff policies, is disrupting trade stability.<\/span><\/p>\n<p><b>Q4. <\/b><span style=\"font-weight: 400;\">How can India reduce dependence on the U.S. market?<\/span><\/p>\n<p><b>Ans. <\/b><span style=\"font-weight: 400;\">India can reduce its dependence on the U.S. market by actively pursuing free trade agreements with the European Union, Australia, and other key trading partners.<\/span><\/p>\n<p><b>Q5. <\/b><span style=\"font-weight: 400;\">What strategy can help India strengthen its trade position?<\/span><\/p>\n<p><b>Ans. <\/b><span style=\"font-weight: 400;\">India can strengthen its trade position by managing external shocks, enhancing domestic economic resilience, and leveraging shifts in global supply chains to increase exports. <\/span><\/p>\n<p><strong>Source: <a href=\"https:\/\/www.thehindu.com\/opinion\/op-ed\/steering-the-indian-economy-amidst-global-troubles\/article69725165.ece#:~:text=Expedite%20reforms&amp;text=While%20global%20uncertainties%20pose%20undeniable,the%20storm%20and%20emerge%20stronger.\" target=\"_blank\" rel=\"nofollow noopener\">The Hindu<\/a><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Daily Editorial Analysis 23 June 2025 by Vajiram &#038; Ravi covers key editorials from The Hindu &#038; Indian Express with UPSC-focused insights and relevance.<\/p>\n","protected":false},"author":8,"featured_media":50653,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[138],"tags":[141,882,909],"class_list":{"0":"post-51572","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-daily-editorial-analysis","8":"tag-daily-editorial-analysis","9":"tag-the-hindu-editorial-analysis","10":"tag-the-indian-express-analysis","11":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/51572","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=51572"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/51572\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/50653"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=51572"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=51572"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=51572"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}