(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?


  • 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:

  1. Surge in Exports:
    • Pandemic-induced global savings surge stimulated demand.
    • India’s goods exports rose to $422 billion in 2021-22.
  2. Exceptional Service Exports:
    • Services exports accelerated, reaching around $325 billion.
    • Driven not only by traditional IT but also professional consulting.
  3. 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:

  1. US Household Savings:
    • Absorbed India’s imports, impacting goods exports.
    • Indian tech sector heavily integrated with US economy.
  2. 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.
  3. 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.


  • 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?



  • 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.


  • US role in global order set to change significantly.
  • India has opportunity to creatively elevate its global position amidst changes.


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