(11/3/2024) Indian Express Editorial Micro Notes Summary
GS-3 Mains Economy : Economic Uncertainties
Question : What were the effects of the US slowdown on the Indian IT industry and consumption?
Introduction:
- Recent GDP data shows promising economic growth.
- However, Gross Value Added (GVA) numbers are sluggish, raising concerns.
GVA Performance:
- Slump from 8.2% in Q1 to 6.5% in Q3, possibly 5.4% in Q4.
- Growth drivers not as strong as perceived.
Drivers of Indian Economy’s Growth:
- Surge in Exports:
- Pandemic-induced global savings surge stimulated demand.
- India’s goods exports rose to $422 billion in 2021-22.
- Exceptional Service Exports:
- Services exports accelerated, reaching around $325 billion.
- Driven not only by traditional IT but also professional consulting.
- Startup Sector Boom:
- Startup funding surged, driven by loose US monetary policies.
- Raised $35 billion in 2021 and $24 billion in 2022.
Impact on Employment:
- Growth in exports and tech sector led to job creation.
- Indian IT sector saw substantial hiring.
- Tightening labor market raised wages, triggering investment and consumption growth.
- Boosted government tax collections.
US Economy’s Impact:
- US Household Savings:
- Absorbed India’s imports, impacting goods exports.
- Indian tech sector heavily integrated with US economy.
- US Monetary Policy:
- US-based funding for Indian startups influenced by US Federal Reserve policies.
- Changes in US economy, like tightening monetary policy, impact Indian growth.
- US Slowdown Effects:
- Indian IT industry layoffs due to US slowdown.
- Slump in consumption as employment prospects decline.
- Indications of slowdown in home prices and vehicle sales.
Conclusion:
- Indian economy still faces challenges.
- High GDP numbers hide underlying issues, with growth not benefiting vulnerable populations equally.
GS-2 Mains : International Relationship : Change and Continuity in US-India Relations
Question : What actions have both Trump and Biden taken regarding China’s expansionism, and how has this impacted the India-US partnership?
Introduction:
- India views US presidential rematch between Biden and Trump favorably.
- Benefited from productive relationships with both administrations.
Bipartisan Support:
- Strong bipartisan commitment to partnership with India since Clinton era.
- Contrast to Cold War indifference and tensions in 1990s.
Contemporary Indo-US Relations:
- US emerged as India’s valuable strategic partner in 21st century.
- Growing engagement in trade, technology, investments, security, and governance.
- Unprecedented political comfort between Indian leadership and US establishment.
Caution for Delhi:
- Relationship must not be taken for granted amid global economic and political rearrangement.
- Last eight years under Trump and Biden brought unprecedented change.
Strictness on China:
- Both candidates confront China’s expansionism, boosting India-US partnership.
Differing Views on Trade:
- India struggles to adapt to US policy shifts under Trump and Biden.
- Trade policies must align with rewritten global trade rules.
- Trump promises tariffs, demands market access, prioritizes commercial interests.
Differing Views on Alliances:
- Trump demands allies share more security burden.
- Radical differences in multilateralism views.
- Trump likely to walk out of climate commitments, demand UN accountability.
Conclusion:
- US role in global order set to change significantly.
- India has opportunity to creatively elevate its global position amidst changes.
हिन्दी