When the US imposed high tariffs on India, most market experts believed that it would have a serious negative impact on the Indian economy. However, India strengthened domestic demand through reforms like GST and took important steps like free trade agreements with many countries to reduce its dependence on the US. As a result, several reports have shown that despite the higher tariffs, the Indian economy was not significantly affected and exports also increased.
Big threat from tariffs
On the other hand, Indian-American economist and Harvard University professor Geeta Gopinath believes that the biggest threat to India’s fast-growing economy is not tariffs, but increasing pollution. He says that pollution has gradually become a serious challenge for India’s development, as it is not only increasing the economic cost but also having a deep impact on human life. Speaking at the World Economic Forum, he said that while trade, tariffs and regulations are much discussed, bigger problems like pollution are often ignored.
Millions of deaths every year in India
Citing a 2022 World Bank report, Geeta Gopinath said that about 1.7 million people die every year in India due to pollution-related causes, placing a huge burden on the economy, workforce and long-term development. He also said that pollution is not just an internal problem of India, but is also a matter of concern for foreign investors planning big investments in the country.
It is worth noting that America has imposed a base tariff of 25 percent on India. The additional 25 percent tariff was imposed due to Russia purchasing crude oil at concessional prices. Thus, the total US tariff rate on India is 50 percent. There have been several rounds of trade deal negotiations between the two countries, but no final agreement has been reached yet. It is now believed that the trade deal between India and America is in its final stages.
