New Delhi, July 1: A potential trade agreement between India and the United States could significantly boost India’s economic growth, senior economist and former IMF Executive Director Dr Surjit Bhalla said on Tuesday.
He believes that external pressure from Washington, including tariff-related deadlines under President Donald Trump, is helping India push long-needed economic reforms. “If it happens, our growth could accelerate to a much higher level,” Bhalla told IANS in an exclusive interview, referring to the trade deal currently under negotiation.
“I don’t see them (US) as threats. In fact, the US and even Trump are doing us a favour by pushing us to reform,” the famed economist added. His remarks come as Indian and American negotiators work towards finalising an interim trade agreement ahead of the July 9 deadline to avoid proposed US tariffs on Indian exports.
According to a Financial Times report, the deal could be concluded as early as this week and may pave the way for a broader free trade agreement by year-end. Bhalla also praised India’s achievement of becoming the world’s fourth-largest economy and the fastest-growing among major economies.
He pointed out that while the country’s current growth rate of 6.5 per cent is impressive, India has the potential to grow even faster — at around 7.5 per cent to 8.5 per cent –thanks to gains in productivity driven by improved education and healthcare. “It’s great that we are the fastest-growing large economy… but we’re not reaching our full potential yet,” he said, adding that economic success should be measured by how close a country is to its potential, not just raw GDP growth figures.
He also welcomed the government’s efforts to strengthen national security through initiatives like Operation Sindhu Sudarshan. “Defence is a core national priority. More defence spending leads to more security and strengthens the economy,” Bhalla said, calling the operation a step that boosts both preparedness and economic confidence.
IANS