

Given the risks and the desire to grow formal jobs and trade, the Indian government will push to lower tariffs — it is only a matter of how and when. In the meantime, the silver lining may be that this external stress will spur India to accelerate overdue reforms. Land, labour, and liberalisation are all needed to unleash growth and increase competitiveness, as US tariffs show that India punches below its weight in labor-intensive manufacturing exports.




























