Unexpected benefits.

"India's exports fell for the fourth consecutive month in February, dropping to USD 36.91 billion." "This marks a decline from USD 41.41 billion in the same month last year." However, imports dropped "to USD 50.96 billion from USD 60.92 billion in February 2024. The trade deficit for February 2025 stood at USD 14.05 billion, the lowest since August 2021." The fall in imports was because of a fall in the imports of crude oil and precious metals as well as a fall in the price of oil. TOI. This was before President Donald Trump imposed 25% tariffs on all steel and aluminium imports starting 12 March. TIE. Trump's reciprocal tariffs will start on 2 April and the rates will be based on "a calculation incorporating tariff and non-tariff barriers its exports face in other countries." HT. White House Press Secretary Karoline Leavitt said, "You look at India, 150% tariff on American alcohol. Do you think that's helping Kentucky bourbon be exported to India? I don't think so. 100% tariff on agricultural products from India." ET. Last month, "Union Commerce and Industries Minister Piyush Goyal...asked the industry players to be bold and focus their energies on turning competitive, rather than depending on the government for support." ET. "Tariff does not protect any country and India needs to cut tariffs for its own good, irrespective of who tells India to do so, NITI Aayog CEO BVR Subrahmanyam  said." ET. Why this wisdom now? Why didn't anyone advise caution when in 2019, "India raised import tariffs on nearly 75 items including gold and automobile parts in its budget (Reuters)?" Clearly, sycophancy to Dear Leader for lucrative posts with enormous perks is more important than what is good for India. "In the past 10 years, Modi's economic strategy has relied heavily on a small team of national champions." "This preference for shielding oligarchs with hefty tariffs, favorable government contracts, as well as non-tariff barriers like stifling rules for foreign-backed commerce, has been pretty well known internationally." "Under Trump 2.0, India's so-called Billionaire Raj could grind to a halt," wrote Andy Mukherjee. Where Trump leads, the EU is sure to follow. "The European Union (EU) is pressing for lower tariffs on key exports, including whiskey, wine and cars, as part of its negotiations for a Free Trade Agreement (FTA) with India." FE. If the government is forced to reduce tariffs on imports, it will have to reduce taxes on Indian products as well. As prices drop it will encourage private consumption which, at $2.07 trillion, "drives around 60% of GDP. Yet consumer spending is weak and has decoupled dramatically from the path of national output since the year ended March 2023, according to economists at state-owned Punjab National Bank." Reuters. That in turn will help Capacity Utilization of industries "which decreased to 74.70% in the fourth quarter of 2024 from 75.80% in the third quarter of 2024." Trading Economics. That, in turn, will create jobs. But if tariffs and taxes go down, what happens to revenue? "Gross GST collections grew 9.1% to about Rs 1.84 trillion in February. It grew 12.3% to Rs 1.96 trillion in January." ET. If revenue drops how to win elections by tossing freebies at voters? "Are we not creating a class of parasites?" asked the Supreme Court. TOI. Perhaps, the Court would tell us who the real parasites are. Pain may be coming. Great.