India Sees a Silver Lining Inside Trump’s Tariff Storm

The socialist economic model India adopted following its 1947 independence didn’t work out so well. In 1956, its per capita income was similar to that of post-war South Korea. While the latter eventually transformed itself into an economic giant, India continued to lag. By the end of the Cold War in 1991, its economy was spiraling into outright crisis, a wrenching experience that forced New Delhi into a raft of major reforms.

That example may be worth keeping in mind as India now confronts the pressure of massive new tariffs thanks to US President Donald Trump. The 50% levy that kicked in last month leaves India — which the Biden administration had touted as a friend-shoring partner to help diversify away from China — with roughly the same tariffs as China itself. That’s a major blow, given that the US is India’s top export destination.