Economic Pressures Mount on India Under Modi Government

Following its diplomatic and defense failures, India has suffered a stinging defeat in the arena of international trade during the Modi administration’s tenure. Despite claiming sovereignty and leadership of the Global South, India has abandoned its economic priorities and succumbed to pressure from major powers. The Indian news outlet The Wire described these failures as the Modi government returning “empty-handed” from the World Trade Organization (WTO) conference.

The publication criticized the administration for capitulating at the WTO, clarifying that India signaled its acceptance of U.S. conditions regarding the non-imposition of customs duties on digital content delivery. Furthermore, The Wire reports that India accepted the Investment Facilitation Agreement without resistance and effectively conceded on the issue of public food stockpiling—betraying its own farmers to remain loyal to American interests.

Even in the context of Middle Eastern tensions, the administration is facing domestic criticism for allegedly sacrificing national interests in favor of its alignment with Israel. According to experts, this perceived incompetence has left the Indian economy grappling with severe challenges, including an energy crisis, currency devaluation, and a decline in remittances. Ultimately, the vision of India becoming a global economic powerhouse has been undermined by these failed and destructive policies.