A US probe into India’s trade practices is holding up the countries’ long-awaited trade deal as New Delhi’s economic woes pile up.
India is pushing the US for preferential tariffs, but the countries’ relationship has worsened during Donald Trump’s second term, compounding New Delhi’s challenges: The Iran war has driven up fuel prices, foreign investment is falling, and the rupee has quickly weakened.
India’s problems are also “self-inflicted,” a Wall Street Journal columnist argued, suggesting the government “should emulate countries like Vietnam that ruthlessly focus on being more business friendly.”
While growth in consumption and services has proven strong, lifting India’s first-quarter GDP, the country could face further economic headwinds from the Middle East conflict’s energy shock, Goldman Sachs analysts wrote.
