New Delhi— A potential trade agreement between India and the United States could provide a major boost to India’s economic growth, according to renowned economist and former IMF Executive Director Dr. Surjit Bhalla.
In an exclusive interview with IANS, Dr. Bhalla emphasized that pressure from Washington—including tariff-related deadlines introduced during President Donald Trump’s administration—has helped spur long-overdue economic reforms in India.
“If the deal goes through, our growth could accelerate to a much higher level,” Bhalla said, referring to the ongoing negotiations between the two nations.
“I don’t view the U.S. or even Trump as threats. In fact, they’re doing us a favor by pushing us to reform,” he added.
His comments come as Indian and American trade officials work to finalize an interim trade agreement before the July 9 deadline, which would avert proposed U.S. tariffs on Indian exports.
According to the Financial Times, the deal could be wrapped up as early as this week and may lay the groundwork for a comprehensive free trade agreement by the end of the year.
Bhalla also praised India’s economic performance, highlighting the country’s rise to become the world’s fourth-largest economy and the fastest-growing among major global players.
While India’s current growth rate of 6.5 percent is commendable, Bhalla believes the country has the potential to grow even faster—between 7.5 percent and 8.5 percent—fueled by improvements in productivity through better education and healthcare.
“It’s great that we’re the fastest-growing large economy, but we’re still not reaching our full potential,” he said. “Economic success should be measured by how close a country comes to its potential, not just raw GDP numbers.”
He also commended the Indian government’s focus on national security, citing initiatives like Operation Sindhu Sudarshan.
“Defense is a core national priority. Increased defense spending enhances both security and economic confidence,” Bhalla said, calling the operation a strategic move that strengthens national preparedness and boosts investor trust. (Source: IANS)
