WEB DESK: The Wall Street Journal delivered a sharp critique of the Indian government, accusing it of pursuing weak and inconsistent economic reforms under Prime Minister Narendra Modi.
The publication contended that the administration has failed to articulate a clear strategy for transitioning to a free-market economy, leaving underlying structural challenges unresolved and amplifying vulnerabilities in the country’s heavily regulated economic framework.
This criticism gains prominence amidst escalating trade tensions with the United States. In August 2025, the U.S. imposed tariffs of up to 50 percent on Indian goods—one of the steepest rates ever levied on a major global economy. Economic specialists cited by the journal argued that these tariffs exposed the timid nature of India’s economic reforms and highlighted weaknesses in the nation’s regulatory structures.
The report described reforms during the Modi era as fragmented, inconsistent, and frequently delayed. For instance, overdue banking sector reforms materialized only in response to a crisis, while the implementation of the Goods and Services Tax (GST) was criticized for being convoluted and misaligned with global best practices. Labour reforms yielded negligible advancements, while essential sectors such as insurance, nuclear energy, and power persistently grapple with bureaucratic inefficiencies, operational hurdles, and financial instability.
Additionally, the Wall Street Journal noted stagnation in the privatisation of unprofitable state-owned enterprises and pointed to the politically motivated reversal of agricultural reforms. Protectionist trade policies, it argued, have further weakened India’s global competitiveness. Analysts highlighted that rather than undertaking comprehensive economic restructuring, India has favored superficial or partial measures.
The editorial concluded by emphasizing the urgent need for India to adopt sweeping and decisive economic reforms. Such steps, it asserted, are crucial to bolstering growth, enhancing competitiveness, and moving beyond piecemeal solutions that fail to address systemic challenges.
