WASHINGTON, D.C. — U.S.-based economists and business leaders said India’s latest Union Budget reinforces the country’s strong growth momentum and sends positive signals on trade and investment, while urging a sharper policy push to boost manufacturing competitiveness.
Steve Hanke, professor of applied economics at Johns Hopkins University, said India’s economic performance under Prime Minister Narendra Modi was unsurprising, pointing to sustained policy focus on growth and trade.
“It’s no surprise that Modi is the most popular major politician in the world,” Hanke said.
He cited International Monetary Fund projections estimating India’s annual real GDP growth at about 6.45 percent between 2025 and 2030, the fastest pace among major economies. Hanke said India’s trade- and growth-oriented policies would continue to draw global attention and capital inflows.
Separately, Gunjan Bagla, CEO of U.S.-India consultancy Amritt, said the budget represents an incremental step in the right direction from an international trade and investment perspective.
He noted that a nine percent increase in infrastructure investment would support foreign trade over time by improving logistics and connectivity.
Bagla also welcomed a 15 percent rise in defense spending, saying it would help India’s armed forces better prepare for security threats, while adding that vulnerabilities in hardware remain.
He said the budget’s emphasis on manufacturing was encouraging but fell short of what is needed to significantly enhance competitiveness.
“Indian manufacturers would have benefited from a more aggressive push across all sectors,” Bagla said, adding that broader support would help Indian factories compete more effectively with China.
Bagla said Indian entrepreneurs have built remarkable companies over the past two decades and that many more could emerge as global players with the right policy framework.
“Manufacturing can create hundreds of millions of jobs in India,” he said.
He added that the global economy needs to view India not only as a fast-growing market but also as a manufacturing superpower. (Source: IANS)
