The Telegraph | Hans van Leeuwen
India's Prime Minister Narendra Modi's ambition for "Viksit Bharat" (developed India by 2047) and superpower status has been significantly hampered by the ongoing war in Iran, initiated by Donald Trump's "excursion." This conflict, past the 80-day mark, has caused foreign investors to flee India, the currency to fall, and petrol prices to rise, forcing Modi to impose tariffs and import restrictions on gold. India, importing 87% of its crude oil and gas with about half typically passing through the Strait of Hormuz, faces severe economic fallout, including a Moody's downgrade of its 2026 growth forecast to 6%. Geopolitically, Trump's closer ties with India's rivals, China and Pakistan, have eroded the 20-year effort to cultivate a strong US-India relationship. India's "Made in India" campaign struggles with stalled manufacturing GDP share and insufficient investment, indicating it is far from challenging China. Modi's government faces strained public finances from fuel tax cuts (₹70bn fortnightly) and fertiliser subsidies (₹500bn), potentially leading to cuts in growth-driving capital expenditure.
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