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Why Pakistan’s economy is drowning while India’s economy is touching the sky

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The 2023 biggest Crisis of the economy in South Asia is going on in Pakistan that has never seen such a disaster since it became apart from India(Hindustan) in august 1947 and drew a thick political border. Several challenges have occurred for the Pakistani residents in order to survive as basic food(Ata flour, rice, and vegetables), oil and gas prices are touching the sky. However, it has been perceived that those basic nourishment have 3 times lower cost in India and are affordable to Indian people. GDP nominal of India is 3700 billion dollar in 2023 while Pakistan represents almost zero billion dollar in its GDP. Moreover, liabilities and external debt that Pakistan holds as of december 2022 is $126 billion.

Impact of trade relation between India and Pakistan on Pakistan’s economy

The geographical link between India and Pakistan is the only Wagah border which lies on a grand trunk road and connects from Amritsar to Lahore. Punjab, Rajasthan, Gujarat and Jammu & Kashmir are the four states of India which share their boundary with Punjab(Pakistan), Sind(Pakistan) and POJK(Pakistan occupied Jammu Kashmir).

Over the past 75 years, these two nations which are also known as nuclear power countries have fought war about three times 1947, 1965 and 1999 only for the territory of Kashmir. And this is the primary cause of the worst trade relation between both the countries. Till 1956, India was Pakistan’s largest trading partner but just after that it started fluctuating and the war happened in 1971 which created Bangladesh as a separate state from Pakistan. The trade has completely halted between both the nations after the reorganisation act 2019 of Jammu & Kashmir. In 2018, GDP(nominal) of Pakistan was 356 billion US dollar while it dropped to 321 billion US dollar in 2019 and kept down till 300 billion US dollar in 2020. However, the economy of Pakistan became almost zero in 2023. Pakistan is still doing trade with India but through third countries especially via the United Arab Emirates which led to a hike in every product’s prices in Pakistan. For instance, if tomatoes are 20 rupees per kg in India, suppose after tax the price becomes 40 rupees per kg in UAE. Now when Pakistan is buying tomatoes from the UAE it will cost 60 rupees per kg after tax.

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GDP of India Vs Pakistan from 1980 to 2028 dataset

Conclusion

Pakistan’s economy started dying at the end of 2022 and the crisis has completely gripped all over the land. People of Pakistan are facing extreme poverty these days because prices of every goods have kept increasing. The value of Pakistani rupees has become valueless where rate of $1 = 300 PKR however rate of $1 is just 82 Indian rupee(INR). There is no comparison of economy between India and Pakistan even though both nations started growing since 1947. India has achieved $3,737 billion in its economy and is predicted to become $5,575 billion in 2028 while no prediction can be made about Pakistan’s economy. Inflation rate in Pakistan has hit 38% as of May 2023 and made the highest record in South Asia.

Where does the Data fetch from?

Data Source: Data for GDP are fetched from International Monetary Fund(IMF)” from the year 1980 to 2028(future). Several information are taken from Wikipedia, USIP, Le Monde, High commission of India, The print and Live mint.

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Economy

Trump’s 2025 Tariffs on India Explained: Full List, Dates, Products, and 50% Duty Impact

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Excerpt: Trump’s 2025 tariff campaign marked a sharp turn in U.S.-India trade, with duties on Indian goods doubling in just four months.

In 2025, during his second presidency, Donald Trump imposed sweeping tariffs on India in a series of aggressive moves that escalated U.S.-India trade tensions to historic levels. Citing concerns over India’s trade practices and its continued purchases of Russian oil, the Trump administration rolled out three major tariff actions between April and August—raising import duties on Indian goods up to 50%. These tariffs hit critical sectors including textiles, electronics, jewellery, and auto parts, causing ripple effects in both countries’ economies.

Trump’s Tariff Actions on India (2025)

The first salvo came on April 2, 2025, when Trump launched a 27% “reciprocal tariff” on several Indian imports as part of a global “Liberation Day” trade policy [1]. This was followed by a 25% tariff announced on July 30, directly targeting India’s refusal to curb Russian energy imports [2].

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The final escalation occurred on August 6, adding another 25% on top of the previous rate, effectively bringing tariffs on most Indian goods to 50% [3].

Sectors Most Affected by the Tariffs

The tariff waves were not evenly felt. While pharmaceuticals remained largely exempt due to their essential role in U.S. healthcare, almost every other major export category from India faced steep duties. These additional costs directly impacted U.S. importers, consumers, and Indian manufacturers alike.

Key Indian Export Categories Affected (2025)

Retailers warned that prices for consumer goods like smartphones, clothing, and jewellery could surge in U.S. markets, with some sectors like gems and jewellery seeing a +24% increase in retail price [4].

Geopolitical Dimensions

Trump’s rationale was not purely economic. The tariffs were directly linked to India’s ongoing energy and defense trade with Russia, which the U.S. viewed as a threat to NATO-aligned global security efforts. By economically pressuring India, the administration hoped to force a pivot in its foreign policy [5].

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India, on the other hand, labeled the moves as “unfair, unjustified, and politically motivated,” threatening retaliation at the WTO and in its own trade policies [6].

A Historic Low in US-India Trade Relations

By August 2025, U.S.-India trade relations had reached a historic low. The 50% tariff wall on Indian exports created significant market disruptions and frayed one of the world’s most strategic partnerships. While pharmaceuticals were spared, consumer goods and industrial sectors were not, and the long-term consequences for global trade remain uncertain.

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References

  1. Wikipedia. Tariffs in the Second Trump Administration. Available at: https://en.wikipedia.org/wiki/Tariffs_in_the_second_Trump_administration
  2. Times of India. India-US trade deal: Trump announces 25% tariff on India. Available at: https://timesofindia.indiatimes.com/business/india-business/india-us-trade-deal-trump-announces-25-tariff-on-india-plus-penalty-for-buying-energy-and-arms-from-russia/articleshow/122998698.cms
  3. Reuters. Trump imposes extra 25% tariff on Indian goods. Available at: https://www.reuters.com/world/india/trump-imposes-extra-25-tariff-indian-goods-ties-hit-new-low-2025-08-06/
  4. IndiaTimes. Donald Trump’s India tariffs set to hit US shoppers hard. Available at: https://indiatimes.com/trending/donald-trumps-india-tariffs-set-to-hit-us-shoppers-hard-phones-auto-parts-jeans-jewellery-to-get-costlier-665564.html
  5. Al Jazeera. Trump imposes 25 percent tariff on Indian goods over Russian oil. Available at: https://www.aljazeera.com/news/2025/8/6/trump-imposes-25-percent-tariff-on-indian-goods-over-russian-oil
  6. Economic Times. India reacts to 50% US tariffs. Available at: https://economictimes.indiatimes.com/news/economy/foreign-trade/trump-tariff-from-50-on-india-and-brazil-to-35-on-canada-heres-how-nations-stack-up-in-comparison/articleshow/123145315.cms
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Economy

Is India Really a ‘Dead Economy’? A Deep Dive Into the Facts Trump Didn’t Mention

When Donald Trump recently called India a “dead economy,” it sparked global headlines and trended across social media. For many, this bold remark raised questions — is there any truth to it? Is India really falling behind, or is something else happening beneath the surface?

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When Donald Trump recently called India a “dead economy,” it sparked global headlines and trended across social media. For many, this bold remark raised questions — is there any truth to it? Is India really falling behind, or is something else happening beneath the surface?

While the term “dead economy” might make for great clickbait, India’s recent economic data tells a very different story — one of resilience, expansion, and global leadership. From strong GDP growth to booming exports and a youth-driven workforce, India is proving itself far from stagnant.

Contrary to claims of economic stagnation, India’s economy is not just alive — it is accelerating. Despite global challenges like inflation, interest rate volatility, and geopolitical friction, India continues to outperform most major economies. Backed by strong fundamentals, a young population, and targeted policy reforms, India stands poised for long-term growth.

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One of the clearest indicators of India’s economic health is its consistently high GDP growth rate. According to the International Monetary Fund (IMF), India is expected to grow at 6.5% in FY 2024–25, maintaining its position as the world’s fastest-growing large economy[7].

Table 1: India’s Real GDP Growth (Fiscal Years)

Alongside growth, India’s manufacturing strength is expanding rapidly, largely due to the Production-Linked Incentive (PLI) scheme. This initiative has boosted domestic production and exports, particularly in electronics and pharmaceuticals.

Export Growth by Sector (FY 2024–25)

Another key strength is India’s demographic profile. With a median age of just 28.2, India has one of the youngest populations in the world. In comparison, China’s median age is around 39.8, and Japan’s is nearly 50[8] [9].

Table 3: Median Age by Country (2023)

In addition, India’s digital and fintech sectors are booming. With over 800 million internet users and a record number of digital transactions via UPI, India is quickly becoming a global digital leader.

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Conclusion: A “Dead Economy”? Only If You Ignore the Data

India may have its challenges, but calling it a “dead economy” is not just misleading — it’s uninformed. The real story is of a country surging ahead, backed by numbers, people, and momentum. Trump may have made headlines, but India is making history.

References

  1. Wikipedia. Tariffs in the Second Trump Administration. Available at: https://en.wikipedia.org/wiki/Tariffs_in_the_second_Trump_administration
  2. Times of India. India-US trade deal: Trump announces 25% tariff on India. Available at: https://timesofindia.indiatimes.com/business/india-business/india-us-trade-deal-trump-announces-25-tariff-on-india-plus-penalty-for-buying-energy-and-arms-from-russia/articleshow/122998698.cms
  3. Reuters. Trump imposes extra 25% tariff on Indian goods. Available at: https://www.reuters.com/world/india/trump-imposes-extra-25-tariff-indian-goods-ties-hit-new-low-2025-08-06/
  4. IndiaTimes. Donald Trump’s India tariffs set to hit US shoppers hard. Available at: https://indiatimes.com/trending/donald-trumps-india-tariffs-set-to-hit-us-shoppers-hard-phones-auto-parts-jeans-jewellery-to-get-costlier-665564.html
  5. Al Jazeera. Trump imposes 25 percent tariff on Indian goods over Russian oil. Available at: https://www.aljazeera.com/news/2025/8/6/trump-imposes-25-percent-tariff-on-indian-goods-over-russian-oil
  6. Economic Times. India reacts to 50% US tariffs. Available at: https://economictimes.indiatimes.com/news/economy/foreign-trade/trump-tariff-from-50-on-india-and-brazil-to-35-on-canada-heres-how-nations-stack-up-in-comparison/articleshow/123145315.cms
  7. Khandekar, N. (2025). India to remain fastest growing major eco with 6.5% growth in FY26: IMF. [online] The Economic Times. Available at: https://economictimes.indiatimes.com/news/economy/indicators/india-to-remain-fastest-growing-major-eco-with-6-5-growth-in-fy26-imf/articleshow/118649360.cms.
  8. World Bank (2023). Population, Total. [online] The World Bank. Available at: https://data.worldbank.org/indicator/SP.POP.TOTL.
  9. CIA (2024). Median age – The World Factbook. [online] www.cia.gov. Available at: https://www.cia.gov/the-world-factbook/field/median-age/country-comparison/.
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Economy

India’s Top Exports and Imports in 2023: What the World Buys and Sells with India

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Excerpt: India’s trade footprint in the global market continues to evolve rapidly, driven by its strategic exports in energy, electronics, and IT services, while mineral fuels and high-tech goods dominate its import landscape. A deep dive into 2023 trade data reveals how India is positioning itself as both a critical manufacturing hub and a growing consumer economy.

India’s Global Trade in 2023: Goods and Services at a Glance

India’s engagement with global trade spans a diverse portfolio, from oil exports to digital services. In 2023, the country’s total merchandise exports reached $431.4 billion, while imports stood significantly higher at $672.1 billion, reflecting India’s expanding consumption base. On the services front, India’s dominance in the global IT sector remained evident, with total service exports worth $309.4 billion against imports of $176.8 billion.

Top Commodities Exported by India

India’s top ten exported goods reflect a blend of natural resources, high-value industrial products, and pharmaceuticals. Leading the list are:
  • Mineral fuels and oils – $89.3 billion (20.7%)
  • Precious stones and metals – $33.4 billion (7.7%)
  • Electrical machinery – $32.3 billion (7.5%)
  • Machinery and mechanical appliances – $29.3 billion (6.8%)
  • Pharmaceutical products – $21.3 billion (4.9%)
These exports position India as a key global supplier in energy, technology, and health sectors[10].

Top Goods Exported by India in 2023

India’s Major Imports: A Strong Energy Dependency

India’s reliance on global energy markets is evident, with mineral fuels and oils topping its imports at a staggering $220.6 billion, accounting for nearly one-third of total merchandise imports.Other notable import categories include:
  • Electrical machinery – $76.1 billion
  • Precious stones and metals – $72.7 billion
  • Machinery and mechanical appliances – $57.1 billion
  • Organic chemicals – $27.3 billion

Top Goods Imported by India in 2023

India’s Services Export Strength: Powered by IT and Business Services

In 2022, India exported over $309 billion worth of services, spearheaded by the booming IT and business services sectors. The country’s global leadership in software and back-office operations is underscored by:
  • Telecommunications, computer, and information services – $144.8 billion (46.8%)
  • Other business services – $74.9 billion (24.2%)
  • Transport and travel services – combined $58.9 billion (19%)

India’s Imported Services: Business and Logistics Take the Lead

Service imports into India, totaling $176.8 billion in 2022, were largely centered around professional services, global transport logistics, and tourism[11].Key imported services include:
  • Other business services – $57.3 billion (32.4%)
  • Transport – $43.5 billion (24.6%)
  • Travel – $25.9 billion (14.6%)

Top Services Imported by India in 2022

Trade Trends and Strategic Insights

India’s trade data reveal several underlying economic dynamics:
  • Energy security remains a critical concern, with high dependence on imported fossil fuels.
  • Export strength is shifting from traditional commodities to high-value services, particularly IT and pharmaceuticals.
  • India’s role in the global electronics and machinery supply chain is growing on both export and import fronts.
  • Inward tourism and logistics spending reflect India’s increasing global integration and rising middle-class consumption.

Conclusion: The Road Ahead for India’s Trade

India’s evolving trade profile highlights a maturing economy—one that is leveraging its digital strengths while tackling structural import dependencies, especially in energy. As India positions itself for greater self-reliance and global leadership, strategic trade policy and investment in key sectors like renewable energy, technology, and services will be vital.

References

  1. Wikipedia. Tariffs in the Second Trump Administration. Available at: https://en.wikipedia.org/wiki/Tariffs_in_the_second_Trump_administration
  2. Times of India. India-US trade deal: Trump announces 25% tariff on India. Available at: https://timesofindia.indiatimes.com/business/india-business/india-us-trade-deal-trump-announces-25-tariff-on-india-plus-penalty-for-buying-energy-and-arms-from-russia/articleshow/122998698.cms
  3. Reuters. Trump imposes extra 25% tariff on Indian goods. Available at: https://www.reuters.com/world/india/trump-imposes-extra-25-tariff-indian-goods-ties-hit-new-low-2025-08-06/
  4. IndiaTimes. Donald Trump’s India tariffs set to hit US shoppers hard. Available at: https://indiatimes.com/trending/donald-trumps-india-tariffs-set-to-hit-us-shoppers-hard-phones-auto-parts-jeans-jewellery-to-get-costlier-665564.html
  5. Al Jazeera. Trump imposes 25 percent tariff on Indian goods over Russian oil. Available at: https://www.aljazeera.com/news/2025/8/6/trump-imposes-25-percent-tariff-on-indian-goods-over-russian-oil
  6. Economic Times. India reacts to 50% US tariffs. Available at: https://economictimes.indiatimes.com/news/economy/foreign-trade/trump-tariff-from-50-on-india-and-brazil-to-35-on-canada-heres-how-nations-stack-up-in-comparison/articleshow/123145315.cms
  7. Khandekar, N. (2025). India to remain fastest growing major eco with 6.5% growth in FY26: IMF. [online] The Economic Times. Available at: https://economictimes.indiatimes.com/news/economy/indicators/india-to-remain-fastest-growing-major-eco-with-6-5-growth-in-fy26-imf/articleshow/118649360.cms.
  8. World Bank (2023). Population, Total. [online] The World Bank. Available at: https://data.worldbank.org/indicator/SP.POP.TOTL.
  9. CIA (2024). Median age – The World Factbook. [online] www.cia.gov. Available at: https://www.cia.gov/the-world-factbook/field/median-age/country-comparison/.
  10. UN Comtrade. (2024). Available at: https://comtrade.un.org [Accessed 25 Jul. 2025].
  11. ITC Trade Map. (2024). Available at: https://www.trademap.org [Accessed 22 Jul. 2025].
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