What is the Rule of Law? How can the Rule of Law be strengthened in India?

 Why is it in the news?

1. The Chief Justice of India said that there is a complete breakdown of Rule of Law in Uttar Pradesh. 

2. Everyday civil suits are being converted to criminal cases. This is absurd. Disputes over civil issues cannot be turned into criminal offences. It was contended that registration of criminal cases in civil disputes is resorted to reach a speedy resolution as civil disputes took a long time. The Supreme Court also castigated the working of police investigation.  

What is the Rule of Law?

1. The Rule of Law is a fundamental principle of governance in a democracy. It means that law should govern a nation instead of arbitrary decisions of government officials. According to Dicey, there are three elements of the Rule of Law. These are : 

• Supremacy of law - It means that nobody is above law. Law is Supreme. People, irrespective of the status of the society, will have to obey the command of law. 

• Equality before the law - All individuals, irrespective of the status in the society, are equal before the law. 

• Predominance of legal spirit - Individual rights and liberties arise from judicial precedent and constitutional guarantees, not from arbitrary state decreases, thereby emphasizing courts as guardians of justice. 

2. In addition, the Rule of Law has the following features. These are : 

• Non- arbitrariness - The Rule of Law secures that government actions are based upon established laws rather than the whims of individuals in power. Thus, it prevents despotism and authoritarianism. 

• Legal constraints on power - The government and its officials are subject to existing laws just as citizens are. Thus, the principle ensures that rulers must adhere to legal constraints. They cannot act outside the law.  

• Impartial application - Laws must be applied impartially across similar cases without consideration of the class, status or power of the individuals, thereby, ensuring fairness in legal proceedings. 

• Universal application of law - Laws should be open, comprehensible to all and universally applicable. Legal obligations should not be retroactively established. 

• Separation of powers - It ensures judicial independence and prevention of interference in legal proceedings by the executives and legislatures, thereby, guaranteeing fair administration of justice and protection of individuals against arbitrary governance. 

• Protection of Fundamental Rights - the Rule of Law ensures protection of fundamental human rights, thereby, ensuring freedom of individuals against infringement of rights.  

• Fair and Public trial - Legal proceedings should be conducted fairly, transparently and publicly. This principle ensures that justice is not only done but is seen to be done, thereby, maintaining public confidence in the legal system. 

• Accountability - Both Government officials and private individuals are accountable under the law. This principle ensures that those empowered are held responsible for their actions and that legal remedies are available for abuses of power. 

Provisions of the Rule of Law in the Indian Constitution

1. Our constitution embodies the principle of Law. It ensures that all citizens are equal before the law and the Government operates within the legal framework to prevent arbitrary use of power. There are several provisions which guarantee the Rule of Law. These are : 

• Fundamental Rights - Under Part III of our constitution, fundamental rights have been bestowed upon the people of India. These Rights include Right to equality (Article 14 to 18), the Right to freedom (Article 19-22) and the Right to constitutional remedies (Article 32). These Rights are meant to protect individuals from the arbitrariness of the state. 

• Separation of Powers - Our constitution establishes a system of checks and balances among three branches of Government. This separation ensures that no single branch can dominate,thereby, upholding the Rule of Law. It ensures that the constitution is Supreme. That all powers emanate from the constitution. If any branch exceeds its limits, the other branch puts a break upon it. For example, if the Parliament in India makes a law which contravenes the provisions of the constitution, the judiciary would declare that law null and void. Article 50 provides for separation of judiciary from the executive. 

• Independent judiciary - The Judiciary in India is independent and has the power of judicial review. This allows the Supreme Court and High Courts to interpret the constitution and Fundamental rights. To safeguard the independence of the judiciary, adequate provisions have been made for the security of the tenure of the judges like stiff procedure of impeachment. Salaries and allowances are charged upon the consolidated fund of India and therefore, not votable in the Parliament. Similarly, salaries and allowances of judges cannot be varied to their disadvantages during their tenure in offices. 

• Legal framework and accountability - Our constitution provides a legal framework for governance. For example, under the seventh schedule of our constitution, the executive and legislative powers have been clearly defined by the Union and state Governments.  Similarly, constitutional bodies like Election Commission, Comptroller and Auditor General of India, SC/ST Commission have been assigned specific tasks and made accountable. 

  

What challenges does the Rule of Law face in India today? 

1. Judicial backlog - The Indian Judiciary is overburdened with a massive backlog of cases leading to delayed justice. Over 50 million pending cases including 77,000 in the Supreme Court and 6 million in High Courts are in India as per the data available in 2025. Justice delayed is justice denied, thereby eroding the confidence of the people in the legal system and the weakening of Rule of Law in India . 

2. Corruption - Corruption within various levels of government and law enforcement can impede the application of rule of law. It leads to favoritism and inability to enforce law uniformly. India ranks 93rd in the Corruption Perception Index (2023) issued by an institution called transparency international. It was also reported that 47% of citizens give bribes for their work. 

3. Social inequality - Deep rooted social inequality in our society supported by caste based discrimination and gender inequality further hinder the equitable application of the rule of law. These inequalities result in differential treatment before the law.  

4. Unequal access to justice - People from marginalised communities face difficulties in accessing legal resources and representation. Economic disparities prevent people from effectively navigating the legal system. The National Legal Services Authority (Nalsa) serves only 15%i of eligible beneficiaries due to paucity of funding and awareness gaps. 

5. Police reforms - Police force is often criticised for being overburdened and sometimes involved in human right violations, custodial deaths and fake encounters. It is also alleged that law enforcement agencies misuse laws like unlawful activities prevention Act (UAPA) with a 3% conviction rate but thousands of detained people languish in jails for years. The Government has failed to implement police reforms as per the judgement of the Supreme Court in the case of Prakash Singh vs Union of India (2006). 

6. Political influence - Political interference in the functioning of police and judiciary, sometimes leads to biased law enforcement and judicial decisions based on political consideration rather than the legal merits of cases. 

7. Legislative overreach - Parliament sometimes passes laws hastily without adequate debate or consideration of long term implications. These legislations infringe upon individual rights. For example, the Government had to withdraw three farm laws under the pressure of farmer unions. 

8. Political and communal divisions in the Society - On account of electoral politics in India, several parties sprang up on communal and cast lines to appease their community or fellow caste brethren. This kind of polarisation challenges the democratic principles and the Rule of Law. 

Thus, the status of Rule of Law in India is poor when compared with the developed countries of the world. The Rule of law index of India was 79th in the world. 

How to strengthen the Rule of Law in India ?

1. Increase judicial capacity - Raise the number of judges to population to 50 per million instead of the present 21 per million. Efforts should be made to fill vacancies in High Courts. 

2. Establishment of more fast track courts for speedy delivery of justice involving marginalised sections of the society. 

3. Ensuring judicial independence

4. Implementing comprehensive police reform to make the police working more transparent and accountable

5. Increasing public legal literacy through awareness campaigns

6. Expanding legal aid services to ensure that marginalised communities have access to legal recourse. 

7. Reviewing and updating laws to reflect contemporary societal needs. 

8. Strengthening institutions like National Human Rights Commission and State Police Complaint Authorities to put a break upon arbitrary arrest and custodial deaths. 

9.Leveraging technology by expanding E-courts to reduce pendency of cases. 

10. Mandatory independent judicial inquiries for encounter deaths and custodial torture.

12. Transparent appointments of judges through collegium system. 

Conclusion

1.  Strengthening the Rule of Law in India is crucial for ensuring justice, equality and democracy. 

2. Indian Democracy will not survive without the strong pillar of Rule of Law. 

3. By implementing judicial and police reforms, the rule of law can be enforced effectively, thereby instilling confidence among the people in the existing institutions. 

4. Our constitution has safeguarded the Rule of Law through article 14, 21 and 32. Our constitution ensures Supremacy, Equality and Judicial guardianship. 

What is the Waqf Bill recently passed by the parliament? What would be its implications on the Indian Society?

 Why is it in the news?

1. The Rajya Sabha passed the Waqf (Amendment Bill) on April 4th 2025. The bill was supported by 128 votes against 95 votes of the opposition parties. The Lok Sabha had earlier passed the bill with 288 votes against 232 votes. Once the President gives assent to the bill, it will become an Act. 

2. The bill was introduced last year but on account of vociferous protests  by opposition parties,  it was referred to a joint parliamentary committee chaired by BJP MP Jagdambika Pal. The report was laid before both Houses on February 13th 2025.

3. Infuriated with the passage of Waqf Bill from both Houses of the Parliament, Congress MP Mohammad Javed, AIMIM MP Assaduddin Owaise, MLA Amanatullah Khan and NGO Association for protection of civil rights have filed separate petition before the Supreme Court, contending that the proposed legislation infringes upon constitutionally guaranteed right to religious freedom and property. 

What is Waqf?

1. In Islamic law, Waqf refers to movable as well as movable property dedicated in the name of Allah for religious or charitable purposes. Proceeds from such properties are to be used for the upkeep of Mosques, Dargah, Khanquah, Madrasas, Maktabs and other educational institutions. The funds from Waqf property are to be utilised for supporting the poor, needy and destitute. These are also meant to provide scholarships to meritorious students to get higher education. 

2. Once designated as Waqf, the property becomes inalienable. It means that the waqf property cannot be sold, inherited or gifted. The Waqf Act 1995 and amendments in 2013 created the legal framework for managing Waqf properties and established state Waqf boards. 

Why did the Government bring the Waqf bill?

1. The Government of India introduced the Waqf (Amendment Bill) in Parliament to address long standing issues in the management and regulation of Waqf properties. The new bill is named the Unified Waqf Management, Empowerment, Efficiency and Development (UMEED) Act. The Government contended that the Waqf Act of 1995 had become outdated and riddled with inefficiencies. For example, the Sachar Committee Report, 2006 highlighted the mismanagement of Waqf property, alleging that the Waqf properties worth 6000 crore generated a mere 163 crore annually due to encroachments, illegal sales and poor oversight by Waqf Boards. 

2. It aimed to enhance transparency, efficiency and inclusivity. The primary reason for bringing the waqf bill was to remove inefficiencies, corruption and legal ambiguities in the existing Waqf Act of 1995. The Government wanted reforms in the administration of the Waqf properties so that there should be better dispute resolution mechanisms, use of technology for property management and improved governance of Waqf Boards.  

3. Government also aimed at ensuring better representation in the Waqf Boards by including diverse Muslim sects and women and introducing provisions like mandatory registration of Waqf properties on a centralised portal and auditing these properties and profits accrued from them. Thus, the government wanted to include marginalised Muslim communities in the administration of Waqf boards. The government also aimed at uplifting Muslim communities economically and socially, particularly widows and divorced women through better management of Waqf assets. Thus, the new Waqf bill aims at eliminating inefficiencies and enhancing accountability. 

Judgements of the Supreme Court to push for reform in the Waqf Act 1995

The various judgments of the Supreme Court pushed the government to bring an amendment in the Waqf Act 1995. 

• In the case of Rajasthan Waqf Board vs Union of India (2016), the Supreme Court questioned the unchecked authority of Waqf tribunals under Waqf Act 1995, whereby the decisions of Waqf tribunals were deemed to be final with no appeal to Civil Courts/High Courts. Thus, it suggested that there is a need for higher judicial oversight on the decision of Waqf tribunals because the finality clause infringes upon constitutional rights under article 14 (Right to equality) and article 21 (Due process of law). 

• In the case of Karnataka Waqf Board vs Union of India (2018), the Supreme Court expressed dismay at the scale of encroachments on Waqf properties and failure of Waqf Boards to protect them. It also highlighted the mismanagement of the Waqf Board.  The Court also held that because of the mismanagement of Waqf properties, benefits from these properties do not reach to intended beneficiaries. 

• In case of Waqf Board vs State of Maharashtra (2011), the Bombay High Court invalidated a Waqf Board claim over private land based on Waqf by user, ruling that long term use alone does not confer ownership without a valid deed. Thus, the court held that Waqf Boards must operate within the legal framework of property law, not religious custom alone. 

• In the case of Karnataka Waqf Board vs State of Karnataka (2016), The Karnataka High Court lambasted the Board for colluding with encroachers and failing to maintain records. It recommended systematic reforms of Waqf Boards, citing lack of transparency and mired in corruption. It supported centralised management. 

• In the case of UP Sunni Central Waqf Board vs State (2020), Allahabad High Court ruled that Waqf tribunals lacked jurisdiction over disputes involving non-waqf parties unless explicitly agreed, thereby advocating broader judicial access. Thus, the High Court pushed for integrating Waqf disputes into the mainstream judicial system to ensure fairness. 

• In the case of Tamil Nadu Waqf Board vs State (2022), Madras High Court rejected the Tamil Nadu Waqf Board’s claim over an entire village (including 1500 year old Hindu Temple) based on flimsy ground, calling it an abuse of power. 

• In the case of Delhi Waqf Board vs Union of India (2022), The court held that Delhi Waqf Board has failed to evict encroachers from 123 properties, including historical monuments. It ordered a detailed audit of the functioning of the Waqf Board and urged for its strict regulation.  

Thus, the different judgements of the Supreme Court and High Courts criticised Waqf Boards for mismanagement, encroachments, corruption and opec functioning. Courts often have urgent legislative and administrative intervention in the functioning of Waqf Boards. Secondly, courts have curtailed boards autonomy where it conflicted with constitutional norms or public interests. They rejected unchecked powers of Waqf tribunals. The judgements stressed upon reforms in Waqf boards entailing audits, proper documentation and judicial oversight. However, courts cautioned against excessive state control over the functioning of Waqf Boards, thereby infringing upon the constitutional rights under article 26 of our constitution.  

What are the important ingredients of Waqf bill?

1. The bill proposes sweeping reforms that significantly expands the government’s role in regulating Waqf properties and adjudicating disputes relating to them. It aims to modernise the governance of over 872000 properties, spanning 940000 acres of land valued at ₹1.2 trillion.  

2. Under the new amendment, only those who have practised Islam for at least 5 years can dedicate properties as Waqf. Thus, it alters the original law whereby any person regardless of religion could dedicate property as Waqf.  Critics point out that this provision is constitutionally suspect because once a person embraces Islam, he is entitled to all associated rights including the rights to religious dedication. This provision also violates the right to equality in article 14 of our constitution because it discriminates against  recent converts by selectively barring them from endowing property for religious purposes.  

3. The new Waqf bill also stipulates that all existing Waqf by user properties registered on or before the enactment of this law will retain their status unless they are disputed as Government land. It should be noted that Waqf by user is a doctrine in Islamic legal tradition that recognises properties as religious or charitable endowments based on uninterrupted communal use even in the absence of formal documentation. 

4. The Waqf Bill provides for the survey of properties by an officer above the rank of collector where the Government ownership is disputed. 

5. The bill provides for provision for the inclusion of non-Muslim in key Waqf institutions. It mandates that both the Central Waqf Council (22 members) and State Waqf Boards (11 members)  must have at least two non-Muslim members. It also removes the requirement that the Chief Executive Officer of a Waqf Board should be a Muslim. It also mandates that at least two Muslim women and representatives from Shia, Sunni, Bohra, Aghakhanis and other backward Muslim classes like Pasmanda in both bodies to ensure inclusivity. 

6. It also stipulates that there must be a State Government representative of the rank of Joint Secretary level to oversee the functioning of the Waqf Board. Critics argue that this provision is a direct infringement upon the fundamental rights of religious groups to administer their religious affairs under article 26, 29 and 30 our constitution. 

7. The bill provides for a centralised registration system for Waqf properties in order to enhance financial oversight. Muttawalis (custodians of Waqfs) will be required to upload property details within six months from the enactment of the law and all future registration must be routed exclusively through this portal to the respective Waqf Boards. 

8. The bill also seeks to repeal section 107 of the 1995 Act which had exempted Waqf properties from the applicability of the Limitation Act 1963. Critics argue that the removal of the Limitation Act would permit encroachers to claim ownership through adverse possession legitimising illegal occupation of Waqf land. 

9.  It ensures that a property can only be dedicated as Waqf after the owner settles inheritance claims, particularly safeguarding women’s rights under Islamic law. This prevents unilateral dedication that disenfranchises family members. 

10. It imposes strict penalties for mismanagement or failure to register properties.

11. State Government’s must appoint survey commissioners to identify and notify Waqf properties. Waqf Boards are required to publish details online, thereby enhancing the public access to information. 

12. District collectors or officers above their rank will survey and settle disputes over Waqf properties, thereby shifting power from tribunals to state administration. 

13. It removes the finality of Waqf tribunal decisions, allowing appeals to High Courts within 90 days. 

14. It empowers the Central Government to set detailed rules for Waqf management, registration, auditing and centralising oversight.

15. Waqf properties must undergo mutation, that is, ownership transfer under state revenue laws with proper records, ensuring legal clarity and reducing encroachments. 

16. Disputes involving government owned land claimed as Waqf will be adjudicated by senior officers above the rank of district collector and not by Waqf tribunals to resolve Waqf conflicts. 

Thus, the Waqf (Amendment Bill,2025) entails diverse representation, digital registration, audits and judicial oversight to enhance transparency, empowerment to marginalised Muslim Groups and Women and promote efficiency. 

Impacts of Waqf Amendment Bill,2025

1. It would lead to better transparency and accountability to Waqf Boards.

2. It would enhance public trust in Waqf institutions.

3. The bill would be able to curb corruption and misuse of official position in the Waqf.

4. It will increase powers of Waqf Boards, thereby resolving disputes swiftly. 

5. The bill would reduce  the power of Waqf Board authority and would enhance government oversight. 

6. The Bill would be seen as interference in religious autonomy by Muslim Community leaders. 

7. Because of encroachments of Waqf properties especially in urban areas, the surveying and digitalisation may reignite dispute over land ownership and so there would arise ampteen numbers of legal battles between individuals or institutions occupying Waqf lands and Waqf Boards. 

8. The Bill would bring more efficient management of Waqf properties , thereby enhancing their annual income. These incomes can be better utilised for the social, education and healthcare upliftment of Muslim communities.

9. The inclusion of non-Muslims and Government control in Waqf Board is seen by All India Muslim Personal Law Board as an erosion of religious autonomy guaranteed under article 26 our constitution, thereby fueling distrust and protest.  

Conclusion

1. The Waqf Amendment Bill aims at bringing transparency in the administration of the Waqf Boards. By auditing Waqf properties several encroached lands would be freed, which may be used for development of infrastructure like schools, hospitals. It is imperative to discourage fringe groups from using the law to target mosques or Dargah. It is also necessary to promote interfaith dialogue to address grievances over specific properties.

What is the new tariff policy of the United States announced on 2nd April 2025? How would it impact the world as well as the Indian economy?

Why is it in the news? 

1. On 2nd April 2025, The US President Donald Trump announced a comprehensive tariff policy. He imposed a baseline 10% duty on all imports from 5th April. This would be followed by individualised reciprocal tariff rates on nations with which the US has a high trade deficit. The increased tariff would be enforced from 9th April. 

2. The US tariffs on India were set at 26%, China 34%+ earlier 20%, totaling 54%, Vietnam 46%, Thailand 36%, Indonesia 32%, Laos 48%, Japan 24%, South Korea 25%, European Union 20%, UK 10% , Taiwan 32%. Thus, the main focus was on China and countries receiving significant Chinese investment called China + one nations acting as conduits for Chinese products into the western world. 

What is the tariff ?

1. Tariff is a tax imposed by the Government on imported goods and services. It makes foreign products more expensive. The purpose of tariffs is to protect domestic industries from cheap foreign goods, generate revenue for the Government, correct trade imbalances and retaliate against unfair trade practices. There are two types of tariffs 

• Ad Valorem Tariff - It is charged at a percentage to the value of goods. For example, countries can charge a 10% tariff on the price of imported cars. If a car is valued ₹5 lakh, 10% tariff would be ₹50,000 realised by countries. 

•  There are specific tariffs charged as a fixed amount per unit. For example, $100 tariffs on every imported smartphone. 

Reasons for the new tariff policy announced by the US

1. President Trump claimed that the US has reduced trade barriers for other countries for decades. On the other hand various countries imposed massive restrictions on American products. This resulted in the decimation for American industries. He cited the example of Detroit which was famous for car manufacturing. Its prime manufacturing position has slid with the passage of time. Most of the workers were thrown out of the job. 

2. President also accused several countries of manipulating their currencies, subsidising their exports, stealing intellectual property, adopting unfair rules and technical standards. 

3. The new tariff policy announced by the US was on account of huge trade deficits with countries like China, Mexico, European Union, Vietnam, Taiwan, Japan, South Korea, India, Canada, Malaysia and Israel.  See the graph below

4. USTR report (US Trade Representative) criticised India’s high applied tariffs on a wide range of goods like vegetable oil, apples, maize, motorcycles, natural rubber, automobiles , coffee, walnuts and alcoholic beverages. 

5. The US Government also reiterated that agriculture support programmes extended by India. Leads to distortion in the international markets. However, the Indian Government argued that US subsidies for farmers are much higher than those provided by India.

6. By increasing tariffs on imported goods into the US, the US government intends to increase the production of manufacturing industries, job opportunities to the youths and increasing the revenue of the Government. It also hopes that the increasing tariffs would have a salutary effect upon other countries of the world and so they would be forced to reduce tariffs on imported goods from the US, thereby, bringing a level playing field.  

Impact on global economy

1. The new tariff policy of the US led to significant global economic repercussions. China retaliated by imposing a 34% tariff on all US goods and restricting export of critical , rare earth elements.

2. Major US stock indices experienced declines of nearly 3% reflecting investor concern about a potential global recession. 

3. European and Asian markets also saw substantial drops with fears of escalating trade wars and economic instability.  

4. Higher tariffs will raise  the cost of imported goods like electronics, clothing and machinery in the US. It is estimated that $3800 would be added as expenses to each household.

5. The IMF's 3.3% global growth projection for 2025 is likely to be revised downward. Critics also point out that there is a chance of global recession on account of trade disruption and reduced economic activity. The developed countries like the European Union and Japan may see GDP shrink by 1-2% because of their heavy reliance on exports to the US. 

Similarly, export-dependent countries like Vietnam, Thailand, Mexico may experience sharper declines because of the heavy tariff duty by the US on their goods. 

6. Emerging markets like India, Mexico, Vietnam, Thailand may see capital outflows, thereby weakening currencies of respective countries.

7. Countries facing high US tariffs may diversify their  exports. This redirection of trade would benefit Africa, Latin America, South Eastern Asia, India. 

8. The high tariffs of the US may push for regionalisation, instead of globalisation. Countries would seek formation of regional blocks to reduce reliance on the US market. For example, India may shift its focus upon the European Union for its export instead of the US.  

9. If nations take recourse to retaliatory measures, it is apprehended that there would be trade wars among nations, resulting in shrinking of global GDP by 1-2% annually. Small countries like Singapore, Ireland, Thailand, Vietnam, Bangladesh would suffer the most. 

10. Economic friction may exacerbate US-China rivalry and would push neutral countries to pick sides, complicating multilateral cooperation on issues like climate change.  

11. Thousands of people gathered in different cities of the US and Europe to protest against the reciprocal tariff announced by President Trump, alleging that he was pushing them into a global recession. Stock exchanges of the US, Europe, Asia and India felt the brunt of  the new tariff policy of the US and the share market crashed. Economists fear that the new tariff policy would herald recession worldwide. 

Impact on India

1. It is estimated that the imposition of higher reciprocal tariffs by the United States on several Asian countries like China, Vietnam, Taiwan, Thailand and Bangladesh presents an opportunity for India to strengthen its position in global trade and manufacturing. 

2. Because of the high rates of tariffs on China and China + 1 countries, India has advantage in several key sectors like textiles and garments. The apparel sector of India would get a boost in the US market because the major competing countries like China, Bangladesh, Vietnam, Cambodia have been slapped with higher reciprocal tariffs by the US. Similarly, higher tariffs on Vietnam may boost Indian smartphones and solar module exports to the US. While there would be an adverse impact upon gems and jewellery. Since, import tariffs in the US may go to 20% from the current 0% on loose diamonds and 5.5% - 7% on gold jewellery. It should be noted that the US is India's largest jewellery export market, accounting for almost 30% of the share. 

3. High tariffs by the US on Indian exports would have a far reaching impact upon gems, jewelleries, smart phones, solar photovoltaic modules and auto components. The Trump Government already imposed a 25% tariff on steel, aluminium and automobiles in March and so, these sectors will also be affected. However, certain critical minerals, energy products, pharmaceuticals and bullions were exempted from US tariffs and so these Indian products would witness enhanced export from India to the US. That’s why the share of the pharmaceuticals increased to 3% just after the announcement of the US new tariff policy.  Export of generic drugs and antibiotics and along with certain petroleum oils stand to benefit from the exemption.  

4. However, discussions are going on between India and the US for the swift conclusion of a mutually beneficial multi-sectoral bilateral trade agreement encompassing a wide range of issues of mutual interest. The ongoing talks are focused on enabling both nations to expand trade, investment and technology. It aims at enhancing the trade volume from $190 billion to $500 billion by 2030.  

5. Experts are of the view that the enhanced US tariffs on India would reduce India’s GDP growth by 0.6% points. Sectors like metals, chemicals, jewellery, automobiles and food items would be highly affected. 

Ways out for India

1. Diversification of Indian exports

• India should reduce dependence on the US for major exports by boosting trade with southeast Asia, Africa and the middle east. It should be noted that the US is the largest trading partner of India. 

• India should make free trade agreements with the EU, the UK and Australia to offset US losses. The India-EU free trade agreement can open a $500 billion market for Indian goods. 

2. India should accelerate efforts to substitute imports and build self- reliance in tariff hit sectors like electronics and autos. Incentives for local manufacturing can offset higher US import cost, thereby, creating jobs. India should focus on value addition. Instead of raw material exports, finished products should be exported. India should focus on high value exports like electronics, semiconductors, green tech and biotech to reduce over dependence on traditional exports like textiles and gems. 

3. India should use tariff exemptions on energy commodities like oil and gas to keep production cost low in order to support industrial competitiveness.  

4. India should challenge discriminatory tariffs in the world trade organisation if it is treated unfairly compared with other countries. 

5. India should deepen its political and economic ties with the Indian Ocean Rim Association (IORA) to offset its losses of exports to the US on account of high tariffs. 

6. India should emphasise  its role as a counterweight to China in the Indo-Pacific by aligning with the US Geo-political interest to gain favourable trade terms. The bilateral trade agreement between India and the US should be finalised to achieve the target of $5 billion trade by 2030. It should also negotiate to lower tariffs or exemptions for key sectors like electronics, gems, jewellery. India should also offer reciprocal concessions to the US imported goods into India.  

Conclusion

The US tariff policy would destabilise the world economy by fracturing trade networks bringing protectionism and reducing globalisation, inflating cost and triggering a potential recession. Critics point out that the new tariff policy of the US would protect American industries, provide jobs to youths, increase the revenues of the US and reduce the trade deficits. However, higher prices, slower growth and market volatility would be witnessed in the global economy. In short, the world faces a turbulent economic landscape. This may mark a pivotal shift away from decades of trade liberalisation. The extent of damage depends upon the scale of retaliations by different countries and the ability of countries to adapt through diversification or negotiation.  India should therefore revive SAARC (South Asian Association of Regional Cooperation) and strengthen its economic and political ties with Indian Ocean Rim Association, IORA and EU to bolster its exports to offset losses on account of higher tariffs imposed by the US on Indian goods. 

To sum up, the new reciprocal tariff policy of the US will have a dampening effect on global trade. It would also usher in the collapse of economies of countries, like South Korea and Taiwan  which are highly dependent upon export driven growth.