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WSJ Rebukes Modi-Era Reforms as Timid, Citing U.S. Tariff Shock

The paper urges a comprehensive overhaul to restore competitiveness.

Overview

  • Wall Street Journal coverage says the August 2025 U.S. tariff of 50% exposed structural weaknesses in India’s heavily regulated economy.
  • The critique describes reforms under Prime Minister Narendra Modi as delayed, piecemeal, and cosmetic rather than a coherent free‑market strategy.
  • Poorly implemented GST is cited as a major failure, with complexity that burdens businesses despite being billed as a landmark change.
  • The report notes late moves on banking fixes and FDI openings, persistent distress at state electricity firms, and a lack of meaningful labor reform.
  • It highlights rollbacks of agricultural liberalization, stalled efforts on land, subsidies, and privatization, and warns that incremental tweaks will not rebuild confidence.