The Road to Domestic Consumption and Self-Reliance

The Road to Domestic Consumption and Self-Reliance

At this time when most of the countries in the world are appearing to bow down before the US and believe its trade terms, fearing the charges being imposed on behalf of US President Donald Trump, India is adamant with its terms without bowing down in view of the interests of its crores of farmers and fishermen under the business agreement with the US. In such a situation, the whole world is seeing that India is coping with the arms of its strong domestic consumption of America's high charge. On the last fifteen August, Prime Minister Narendra Modi, while addressing the country, announced a comprehensive improvement in Goods and Services Tax i.e. GST and indicated its prompt implementation. It is expected that this will increase domestic consumption rapidly in India.

The global routes published by US President Trump on impact on the economy from fifty percent fee imposed on India are saying India's domestic consumption is strong. In such a situation, India's growth rate does not anticipate any alarming decline. Recently, on August 13, global rating Ezansi 'S&P' said that the US incurring fifty percent high on India will not affect its economic growth. India's economy will continue to trend to grow. India's 'Savren rating' view will still remain positive. Since India is not an export oriented economy, it does not need to worry about fee related at the moment. 'S&P' believes India's growth rate will remain 6.5% in the current fiscal year 2025-26. Similarly, in an analysis of 'Margan Stanley Research' on August seven, India's domestic demand has also been said to be strong.

 At this time India's growth rate has got a strong internal domestic base. Now it is required to be carried forward continuously. Recently the International Monetary Fund has estimated the growth rate of India to remain 6.4% for the current fiscal year 2025-26. It has also been said that India's growth rate doubled from the growth rate of the global economy. Similarly, the rating Ezency 'CRISIL' in its rump has said that India will have a growth rate of 6.4% in this financial year 2025-26, improving domestic consumption, producing plenty of food grains, better monsoon, narrowing of crude oil prices, reduction in inflation, cheap debt and other sectors. Last day, the Union Minister of Commerce and Industry said in the Lok Sabha that international institutions consider India as a revival centre of the global economy.

Considering the charges that the US has imposed, the government will protect the interests of farmers, exporters and industries. Economists say it is now important to grow on the dougter of implementing financial, labour and agricultural reforms for faster growth in various sectors of the Indian economy amid the challenges of the global economy. Significantly, according to the recently published data, retail inflation is also promoting consumption in the domestic market. Retail inflation has come down to a low of eight years. Cheap debt has enthusiasm in industry business. Recard production in agriculture sector, of monsoon Good progress, adequate reservoir level and strong kharif sowing is showing positive scenario. Addressing the employment fair in the past, the Prime Minister said that India has the world's largest youth population, the largest democracy, the Naventerprise, the innovator, the fast-growing market and the heights of the service sector such powers, which are pushing the countries of the world to increase trade with India. Retail inflation is estimated by the RBIs. estimate for FY 2025-26 has reduced from 3.7% to 3.1%. In June 2025, retail inflation decreased to 2.1%. The retail inflation rate stood at 2.82% in May. Not only this, the wholesale inflation rate in June also went negative for the first time in 20 months.

 It decreased to 0.13%. Food and fuel prices declined as well as reduced the cost of manufactured products. May wholesale inflation rate was 0.39%. While a sharp decline in inflation is quite advantageous for the economy, cheap debt in India will also increase consumption and economic speed in home remedies. On the past six June, Reserve Bank Governor Sanjay Malhotra, while presenting a bimonthly monetary policy review, elated a cut of 50 basis points i.e. 0.50% in the repo rate. Now repo rate has decreased from six% to 5.5%. The repo rate has been cut for the third consecutive time since February in 2025 this year. At the same time, the Reserve Bank has also brought it to three percent, making a major cut of one percent in cash reserve ratio (CRR). Definitely free trade agreements (FTA) are seen innovating India's global business presence. The agreements made by India with the UAE, Australia, and the UK are key. India has benefited from the deal with the United Arab and Australia.

It is also important that the much-awaited FTA between India and the UK signed on July 24. It is also noteworthy in the perspective that the Switzerland ambassador to India recently on July ten, Maya Tissafi, said that the trade agreement between India and four member countries will come into effect from October 2025. All these as well as the sum of the existing trade agreement between ASEAN includes Brunoi, Kambodia, Indonesia, Laos, Malaysia, Myanma, Philippines, Singapore, Thailand and Vietnam. It is also important that it will now be necessary to increase policy support to support domestic growth. To increase domestic consumption, it will be necessary to adopt indigenous and encourage indigenous industry business in every possible way. Expect the government to move faster on the dagar of implementation of announcements made to add to domestic consumption. It is also expected that the government will maintain the growth rate at a height while further strengthening the domestic market consumption in every possible manner to counter the challenge of fifty percent fee imposed on India on behalf of US President Trump. Vijay Garg Retired Principal‌ Educational columnist Eminent Educationist street kour Chand MHR Malout