The withdrawal this week of the preferential trade status granted by the US to several Indian products will have limited economic impact given that exports of the affected goods were worth just 0.2% of GDP last year. Nevertheless, the move should give India’s policymakers food for thought in terms of their own protectionist policies. Local industrial bodies have also vocalised the need for continued structural reform this week. With a strong mandate, we are optimistic that Prime Minister Modi’s reform agenda will incrementally move forward over the coming years.
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