Inspired by the themes explored in “US- India Trade in retaliation Times” by Saurabh Pant published by Rochester square group in 2019 with its new edition coming soon.
India is a nation of cultures, communities and diversity which also brings so many challenges that other nations might not even dream of.
Even if we separate the ongoing war in the middle east, there are other elements in its economic stand point that can cause so much confusion for those who pretend to be top experts and have claimed themselves the voice of critical discourse.
Let’s find out with a brief comparison that where do we stand out as it’s time to analyse the current stand point of the Indian economy.
Transport and Infrastructure
Large investments in highways, railways, ports, logistics and urban transport continue to support economic growth and connectivity.
Our companies such as VR logistics on road, Indian railways for trains, Shipping corporation of India for ships and Tata airlines for airways have shown remarkable pace.
The clashes of the middle east may have brought pressure to utilise fuel but we are starting to utilise options and make sure it works without any hassle.
Besides public transport, India has gained a huge stride for personal vehicles as a large spectrum holds their own vehicles and people are ready to spend to make sure they don’t get affected by any concerns.
Agriculture and Rural Economy
Agriculture remains central to India’s economy, though climate variability and global trade disruptions continue to present challenges.
Recently concluded EFTa in the fiscal year of 2025/26 may show hope as certain countries pledge to boost agrarian products.
India continues to hold its position strong in fruits, eggs, dairy products, fisheries and our spices continue to make headlines across the world due to the ample demand.
Our rice trade is also well known in South EastAsia with Vietnam being one of the larger occupiers but other countries have equal share of it such as Malaysia, Thailand and Cambodia.
Seasonal crops may be in core demand but war hostilities both in the Middle East and Russia show how much we have contributed through our agrarian sector to the globe as grains are exported to Leningrad, tea reaches Iran and fish oil does well in Africa.
We may have to cut a few options as we witnessed in case of sugar this year and we did the same to onions last year but we also have to check commodity prices as the world would try to bargain and we must stick with our rules.
Banking and Insurance
Banking facilities stand as pillars to help India grow while Insurance companies have risen up to help those who are in need of finances at critical stages.
It is our central bank that has played a more crucial role trying to control the depreciation by contributing through funds and has also put a decent measure on repo and reverse repo rates having a check on fiscal policy.
The NDFC in India might have been brought down significantly but the debt collection and its recovery is still a problem to settle around.
The bankruptcy code has proved to be a certain element to make it more transparent but there are more plans which need to work to make banks more productive.
Indian banks such as SBI, PNB, HDFC, ICICI, Bank of Baroda or others continue to offer premium services to customers showing their credibility as banks.
As for insurance, we are in a much better position helping people in critical positions such as accidents, medical concerns, disasters, brokerage and other elements to fix the need. \
The NICl, OACL, LIC and other companies make sure the process remains smooth with instant paper work to cover the leverage in all aspects proving their role more viable in such concerns.
There are rural parts of India where insurance is not easily covered for disasters or critical deaths and agencies have to be more accurate but it may be fixed with time.
Growth of the IT Sector
India’s IT industry remains a major contributor to exports, employment and foreign-exchange earnings through variables.
Software exports, Artificial intelligence and even hardware components show the shifts it has brought to Indian global status.
Companies from France, Germany and Denmark are eager to invest helping to show positive signs as we do require FII to uphold market value and our global stakes.
Technology to explore fields such as green amenities, solar power and other data science assets show how far we have come across Itsector in recent times.
Rising Gold Imports
Strong demand for gold increases the import bill and can contribute to trade deficits.
India has to buy gold from other nations with Canada one of its most reliable sources but the purchase does take place in dollars.
It also holds multiple uses for gold barring the functional utility with uses in vehicles, electronics and heavy equipment which shows the sudden upsurge.
Though the PM has appealed for limited purchase of gold in the upcoming year, it comes to how we export jewels made of gold to rich nations and bring gold assets under our control.
Choices in the US–Iran Conflict
Energy prices, shipping routes and trade uncertainty may affect India through higher costs and market volatility but there is another element to it.
India is blessed to get crude oil supplies from Russia as the new route from Chennai to Vladivostok via the south China sea helps.
We also have helped other middle east countries get a different trade pass in absence of hormuz which is evident in the form of Nava shiva and other ports in Western India.
Besides, UAE must play a crucial role to negate any other oil or gas supply challenges helping India reach its energy target and complete them in time.
Redeem Investor Confidence
Global uncertainty and capital outflows can influence markets and investment sentiment.
RBI does report a small shortage in our FDI reserves but it has happened due to multiple factors.
Companies who had success are not the same. Investors also have to comply with rules and the modus operandi of investors should also be in check, which is that they are not cooperating with us.
However, India shall manage to redeem the trust of bull market operators by getting hold of new energy market shifts at the end of Nov and will hold firm positions in textile and auto markets to bring these investors back.
Our medicines have shown the maximum output they can in the war zones as outsource zones will open separating them further that will help such investors to also boost the pharma sector and bolster our position.
The only thing they have to decide is how long they can stay affirming their own stature as it would help India to cross over the rift created by global chaos.
Iron Ore Exports
Iron ore and engineering exports continue to contribute to industrial growth and export earnings.
We may only contribute 2% in the global weapon market but the iron ore used in those weapons is directly connected to our skill and strategic influence in the metal.
The recent instance of iron ore used in heron drones is enough to explain the actual capacity by which nations demand to counter regional threats and the way we have contributed through it in war zones.
If we go by data, India is 2nd in steel supplier round the globe only after China and we may also leave it behind by the end of fiscal year 2026/27 as the demand scale goes up.
Most of central asia assume to ask for help when it comes to supply iron ore and India is credited for its credibility alongside the quantity of the metal supplied.
Although inner forces try to bring cohesion as we can see from recent flash fires in the Ministry of Engineering building , it only brings a slight delay which we can manage easily.
Our construction engineers have performed around the globe as their services are of top demand around Asia Pacific and other countries but it also comes with political feud.
Bridges are toppled, key assets are blown up, protective places get in direct marching conflict, a huge sector is involved to disown the culture we inherited through a planned influence and it only lapse time which we know to handle as we continue to fix it.
Rupee Depreciation
A weaker rupee can help exports but also raises the cost of imports and inflationary pressures.
Depreciation is clearly shown as the dollar has gained a severe edge going more than 95 rupee approximate but it would fall down.
NRIs have to play a certain role to consume the effect of the fed rate in the United States as they are aware of the current situation.
It is already mentioned above how we are trying to hold FIIs and the manners in which we would find trust in the investors.
The energy sector may be looking gritty due to the Iran conflict but we have found other sources to counter it and control depreciation in regard to crude oil concerns.
We are also at the closest to look at choices against the dollar, though Vostro accounts do work but the Bric currency might put a stop to the influence dollars has on Asia in coming years.
Conclusion
India’s economy reflects both opportunity and challenge, requiring resilience, strategic planning and balanced global engagement.
We are at the edge of finding solutions which is why there are many problems and it’s almost time for us to come out from the whirlpool and swim back to the shore.
We may have to take some cruel or harsh decisions but for a better or financially strong India, they may be worth taking and make our country great again.
Brief author bio:
Saurabh Pant is an Indian born author with sight loss due to Retinitis Pigmentosa who was born on 4th of April 1994 in the beautiful hill station of Nainital in Uttarakhand that is also known for its serene beauty and cultural glories.
After having pneumonia at 3, he started to lose sight at 6, came in touch with braille at 12, learnt screen reading for computers and got educated from a prominent institute for the visually impaired known as NIVH.
In his college days in Kirori mal college he came back to inclusion where he found the touch of writing further and managed to publish his 1st book titled Affection never dies.
Ever since he never looked back as today he is the author of more than 120 works and has won 11 international awards alongside gold medals from Indian writing platforms.
The features in various news websites, magazines and appreciation makes him look forward as he believes in more growth and keeps working to become a master one day.
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