India’s Prime Minister Narendra Modi
Donald Trump’s sanctions began to take a toll on the Indian economy, which is now undergoing reforms.
India e USA have had somewhat intermittent relationships, of advances and retreats, throughout this year.
India was one of the many countries covered by those imposed by Donald Trump, president of the USA.
There was still negotiations in July, but India did not accept opening its market to US agricultural products and did not accept Trump as a mediator in the conflict with Pakistan.
In August, rates reached 50%. Textiles, precious stones and seafood involved and greater social and economic pressure in India.
Despite these economic tensions, at the end of October, the two countries signed a defense cooperation agreement. It lasts 10 years and reinforces the military alliance against China.
But there is something that unites India, China and the USA. And Russia: the Donald Trump’s sanctions on Russian oil affected imports from India and Chinaas indicated by , also in October.
More specifically, India’s largest refineries are reduce drastically your imports. All because of US sanctions on Rosneft and Lukoil, Russia’s two main oil companies, which are helping the Kremlin in the war with Ukraine.
Now, India reacts to the US measures with several reforms that could be implemented by… Elon Musk.
Priorities: less bureaucracy, lower taxes and more flexible labor laws.
Sanjeev Sanyal, official economic advisor to Prime Minister Narendra Modi, sees himself as a kind of Elon Musk indiano.
The former Deutsche Bank manager has the mission of simplify and improve efficiency of India’s complex public bodies.
“We know that India has a reputation for being excessively bureaucratic. Our system needs to become significantly more efficient”, commented Sanyal on .
To do this, thorough and detailed work needs to be done: “We are literally moving from one government agency to another, examining each regulation, to see how it can be simplified.”
For now, runs well in the official closure of companies: it took almost a year and a half – now it takes two months.
In fact, there is a government reform in New Delhi: the idea is to further boost economic growth and make the country more competitive – also as a response to the trade dispute with the USA.
The Government is give in to various claims of the entrepreneurs: it simplified its complex VAT tax system, reduced obstacles to factories and fundamentally overhauled labor laws, which had been criticized for being overly rigid.
