New Delhi– A potential trade agreement between India and the United States could significantly boost India’s economic growth, according to renowned economist and former IMF Executive Director Dr. Surjit Bhalla.
In an exclusive interview with IANS on Tuesday, Bhalla said that external pressure from Washington — including tariff-related deadlines set during former President Donald Trump’s administration — has played a role in pushing India toward much-needed economic reforms.
“If it happens, our growth could accelerate to a much higher level,” Bhalla said, referring to the trade deal currently under negotiation.
“I don’t see them [the U.S.] as threats. In fact, the U.S. — and even Trump — are doing us a favor by pushing us to reform,” he added.
Bhalla’s comments come as Indian and American negotiators work to finalize an interim trade agreement ahead of a July 9 deadline, which could avert proposed U.S. tariffs on Indian exports.
According to a report in the Financial Times, the deal could be wrapped up as early as this week and might lay the groundwork for a broader free trade agreement by the end of the year.
Bhalla also lauded India’s achievement in becoming the world’s fourth-largest economy and the fastest-growing among major global economies.
While India’s current growth rate of 6.5% is strong, Bhalla believes the country has the potential to grow even faster — between 7.5% and 8.5% — thanks to rising productivity, particularly from improvements in education and healthcare.
“It’s great that we’re the fastest-growing large economy… but we’re still not hitting our full potential,” he said, emphasizing that true economic success should be measured by how close a country comes to achieving its potential, not just by headline GDP figures.
Bhalla also voiced support for the Indian government’s initiatives to bolster national security, including Operation Sindhu Sudarshan.
“Defense is a core national priority. More defense spending leads to greater security and boosts economic confidence,” he said, calling the operation a move that enhances both preparedness and economic strength. (Source: IANS)
