Do it yourself

The 1998 US sanctions on India, imposed after the Pokhran-II nuclear tests in May 1998, were a pivotal moment that reshaped India's economic, strategic, and technological trajectory. Triggered by India’s nuclear tests under the Vajpayee government, these sanctions aimed to penalize India for violating non-proliferation norms. Sanctions included restrictions on technology transfers, suspension of US aid (except humanitarian), bans on defense sales, and multilateral lending curbs by institutions like the World Bank. While the immediate impact was disruptive, the long-term effects catalyzed India's self-reliance, economic reforms, and global repositioning. Economic reforms and growth acceleration Immediate impact The sanctions caused short-term economic turbulence. Foreign capital inflows dropped, with FIIs pulling out $1.2 billion in 1998, and India’s GDP growth slowed to 4.8% in FY99 from 6.5% in FY98. The rupee depreciated by ~12% against the dollar, and export growth sta...

“Did you notice that no politician takes moral responsibility for any wrong these days!” In the past two months, many readers have asked about my expectations of the outcome of the ongoing general elections and the likely impact of it on the Indian economy and financial markets. I am glad to offer my opinion, with the rider that I am an independent observer of Indian politics and have no affiliation or inclination towards any particular political party or group thereof. Economic impact I believe that in India economic policies, and therefore financial markets, are politics agnostic. I do not see the outcome of general elections impacting the Indian economy in any significant manner. A study of the history of Indian politics would suggest that, unlike the Western democracies, only an abysmal minority of Indian voters are strongly committed to a political or socio-economic ideology. Contemporary issues, personalities, and election promises usually dominate the political discourse...