“ Not only on trade ”: the market expert says that all countries must now play `Trump pricing play

India must look inward to find a solution to the commercial quagmire with the United States, said market expert and investor, Ajay Bagga. With a price card on the table, all countries must play the same game, he said. India cannot depend on unpredictable external demand. He said India must polish their policies to stimulate domestic consumption.

“For India, the real risk is not only the prices – this is the training effect on the CAD (deficit of the current account), money, consumption and growth of employment. Policy must be ahead of this wave – it is an opportunity for Big Bang reforms and seize the moment to generate a quantity,” he said in a series of messages on social media.

With prices such as levers of “diplomacy, dominance and disagreement”, it is no longer just trade. “It is a question of rewriting the rules of globalization,” he said.

“The countries must play the game-or risk being played. The United States and China are the two dominant players. The rest of the countries are trying to be players and not pawns. India has done well but will have to increase their act now,” he added.

India’s ambition to become an economy of $ 10 billion must also take into account a world of prices, fragmentation and realling of the supply chain, he said. This leaves with India the only option to strengthen interior growth.

“Trump’s 25% prices are a reminder: external demand is unpredictable. India must now rotate domestic consumption as a basic growth engine. An economy of $ 4.2 billions with 1.4 billion consumers is our greatest opportunity,” said Bagga.

He said India needs the following to stimulate domestic consumption:

• Rationalization of GST, reduction in fuel costs
• A direct tax allegiance for the middle class
• Deployment of faster rural infrastructure
• Targeted msme credit
• Cut LTCG and STCG to release a wave of optimism on the markets

Bagga said the government can only do when investors have more gains. “Stimulation of demand should be downloaded on the front, not delayed,” he added.

India must not only target but work proactively to achieve GDP growth of 8%. The demographic rear winds will disappear by 2040, and therefore India has a narrow window to carry out the skills of its workers, create jobs and increase urban productivity.

“India must consider Trump’s prices not only as commercial threats-but also pressure for economic reset. Strategic deregulation, diversification of trade and export support can reposition India as an alternative to China trust,” he said.

Bagga also suggested the keys to the management of the Trump era:

• Finalize the free trade agreements (United Kingdom, EU, GCC)
• Develop trade and barter transactions in rupees
• Invest in the export infrastructure
• Negotiate access to the Service Sector

India’s ambition to become an economy of 10 billions of dollars can be carried out by guaranteeing balanced growth through consumption, capital expenditure and exports, but no sector can maintain this growth alone, said Bagga.

To increase consumption, the government should focus on reducing indirect tax burden on low -income households. This includes the simplification of the goods and services tax (TPS), the drop in tax slabs for essential goods and the relaxation of compliance requirements for small businesses. These measures will help maintain demand without discouraging expenses.

Despite the lower global economic conditions and the increase in geopolitical risks, India must rely on internal engines such as reforms, productivity improvements and trust -based growth, said Bagga.