Listen Top Shows Blog

What is next for the Indian economy?

What is next for the Indian economy?

Update: 2025-01-31

Share

Description

From the BBC World Service: The Indian finance minister is set to unveil the country’s annual budget on Saturday, but keeping India’s rapid growth on track won’t be easy. But first, are we going to see tariffs on Canada and Mexico? President Trump is expected to follow through on his plans to impose tariffs on the two countries starting February 1.

Comments

In Channel

Medical debt and your credit: It's changing and we have an update

Medical debt and your credit: It's changing and we have an update

2025-06-0309:16

The hard path to rebuilding, with "This Old House Radio Hour"

The hard path to rebuilding, with "This Old House Radio Hour"

2025-06-0353:33

Tariffs and economic growth, both globally and at the checkout line

Tariffs and economic growth, both globally and at the checkout line

2025-06-0309:22

Global growth set for decline, as ballooning government debts take hold

Global growth set for decline, as ballooning government debts take hold

2025-06-0307:55

Defaulting on debt isn't the only way to scare investors

Defaulting on debt isn't the only way to scare investors

2025-06-0209:47

U.S.-China trade truce is on shaky ground

U.S.-China trade truce is on shaky ground

2025-06-0209:44

Britain boosts its defense spending

Britain boosts its defense spending

2025-06-0208:39

JetBlue and United announce new partnership

JetBlue and United announce new partnership

2025-05-3009:41

Appeals court allows Trump's tariffs to continue for now

Appeals court allows Trump's tariffs to continue for now

2025-05-3009:47

The waters are clearing for Japan’s seafood exports

The waters are clearing for Japan’s seafood exports

2025-05-3009:15

With a key tariff strategy blocked, the White House eyes alternatives

With a key tariff strategy blocked, the White House eyes alternatives

2025-05-2909:26

How to plan buying, selling and shipping after new court ruling on Trump tariffs

How to plan buying, selling and shipping after new court ruling on Trump tariffs

2025-05-2909:30

Tariff ruling boosts global markets

Tariff ruling boosts global markets

2025-05-2908:16

What is a "golden share"?

What is a "golden share"?

2025-05-2809:41

The Trump administration is building closer ties to crypto

The Trump administration is building closer ties to crypto

2025-05-2809:44

'State of emergency' in Panama

'State of emergency' in Panama

2025-05-2808:20

Why switching jobs is harder for older workers

Why switching jobs is harder for older workers

2025-05-2709:50

EU agrees to speed up trade talks

EU agrees to speed up trade talks

2025-05-2709:54

Shein accused of breaking EU sales laws

Shein accused of breaking EU sales laws

2025-05-2708:13

How new ways to prevent RSV are savings lives and money

How new ways to prevent RSV are savings lives and money

2025-05-2609:54

00:00

00:00

1.0x

Transcript

00:00:00

Ryan Reynolds here for Mint Mobile.

00:00:01

I don't know if you knew this, but anyone can get the same premium wireless for $15 a month plan that I've been enjoying.

00:00:08

It's not just for celebrities, so do like I did, and have one of your assistance assistants switch you to Mint Mobile today.

00:00:14

I'm told it's super easy to do at MintMobile.com/switch.

00:00:19

Up front payment of $45 for three month plan, equivalent to $15 per month required.

00:00:24

Intro rate first three months only, then full price plan options available, taxes and fees extra, feeful turns at MintMobile.com.

00:00:30

Are we going to see Tower of Sun, Canada and Mexico?

00:00:34

Hello, this is the Marketplace Morning Report, and we're live from the BBC World Service.

00:00:38

I'm Leana Bern, good morning.

00:00:40

The latest on Tower of Sun, President Trump is expected to follow through on his plan to impose Tower of Sun, Canada and Mexico, starting the 1st of February, which is tomorrow.

00:00:51

The BBC's business correspondent Nick Marsh has been following this one.

00:00:56

Hello.

00:00:57

Hi, Leana.

00:00:57

So will he won't he on Canada and Mexico, Tower of Sun?

00:00:59

What do you think?

00:01:00

It's anyone's guess, isn't it?

00:01:02

But as of now, speaking to you, he has confirmed that starting on Saturday, imports from America's closest to neighbours will be subject to a 25% border tax.

00:01:15

The reason Donald Trump says is the sort of jolt Mexico and Canada into action over the large amounts of undocumented migrants and opioid drugs that are coming across the US border from those countries.

00:01:30

So it's a negotiation tactic, mainly I think Donald Trump is pretty open about that.

00:01:35

But it does also have the, you know, the economic dimension to it as well.

00:01:39

It will protect American-made goods and American jobs domestically, which is obviously a big concern of Donald Trump's as well.

00:01:47

But presumably, it would be disruptive for US industries that rely on cross-border supply chains, particularly in energy and manufacturing as well.

00:01:55

It really would, and that's the other side of tariffs.

00:01:58

Mexico and Canada are America's two biggest trading partners.

00:02:03

If you take an example like energy, so oil, like you just mentioned, if you put tariffs on the imports of oil, then the price of oil will generally go up,

00:02:14

not good for inflation.

00:02:15

There is the possibility that Canadian oil, for example, might be exempt from these tariffs.

00:02:19

So they're always flexible.

00:02:21

You know, there's always room for negotiation.

00:02:23

I mean, we saw the supposed tariffs that were going to be going on China, for example, up to 60% Donald Trump was talking about in the campaign.

00:02:30

Now they've gone down to 10%.

00:02:32

So there's always that kind of wiggle room.

00:02:34

Exactly.

00:02:34

We'll know either way by tomorrow.

00:02:36

Nick Marsh, thank you so much for joining us in Marketplace.

00:02:39

Thanks so much.

00:02:40

Now let's do the numbers.

00:02:42

European markets are hitting record highs on Friday driven by big gains in tech and healthcare, but investors are keeping a close eye on that looming US tariff deadline, and it's pushing them towards the safe haven metal gold,

00:02:54

which also hit a record high jumping to $2,700 and $98.

00:03:00

And it's changing times for Japan's workforce with a number of foreign workers hitting a record high, as the country tackles a labor shortage in its aging society.

00:03:10

The official figures show the number of foreign workers jumped by over $250,000 last year, reaching $2.3 million.

00:03:18

That's about 3% of the total workforce.

00:03:20

Let's go to India now, where its finance minister will unveil the country's annual budget on Saturday, but keeping rapid growth on track won't be easy.

00:03:29

The country faces economic challenges that could threaten its status as one of the fastest growing economies in the world.

00:03:36

The BBC's Arunadeh Markaji reports from the Indian Motor Show in Delhi.

00:03:40

Maruti Suzuki, India's largest selling Carmaker, is feeling the pinch.

00:03:44

Parthobanagy, the sales and marketing head of the company is optimistic, but also realistic about industry challenges.

00:03:51

The bottom of the pyramid, the people who are there, their affordability has been a challenge.

00:03:57

How we can try to bridge the gap of the affordability, is something collectively we all have to work together.

00:04:03

Walking through supermarkets and looking at revised price tags of essential items is a reminder that from vegetables to fast-moving consumer goods, costs have significantly gone up.

00:04:15

And because incomes have not increased at the same pace, people are much more cautious about spending.

00:04:21

Consumption makes up 60% of the Indian GDP, so the lack of spending has a direct impact on the country's growth.

00:04:28

Now this is definitely a sizable slowdown.

00:04:31

Which is why economists with Quant Eco Research, Yuvika Single says, putting money in the hands of Indians is essential.

00:04:38

Urban consumption does require a hand holding, which can come to some extent from some kind of a tax incentive coming in from the budget.

00:04:46

Personal income tax can see some reject to give the middle income class earners some kind of reprieve to give a boost to their disposable income, which ultimately translates into higher consumption.

00:04:56

Along with weak consumer demand, factories across sectors saw muted manufacturing activity.

00:05:03

The combination, driving down India's economy to a 7/4 low.

00:05:08

India's growth fell from 8.1% between July and September in 2023 to below 5.5% for the same period in 2024.

00:05:18

Private investment too has been sluggish, and while one still sees construction sites for big infrastructure projects as we drive through Indian roads, the government has pulled back on its spending.

00:05:31

But despite the headwinds, this nation of 1.4 billion people is still bustling with economic opportunities.

00:05:40

The buzz on the streets backed by the World Bank and the International Monetary Fund, who say, comparatively, India will still remain one of the fastest-growing big economies in the world.

00:05:51

That was Iruna Day Mukherjee in Delhi.

00:05:54

Now, thousands of homeowners in Southern California are trying to pick up the pieces and rebuild after wildfires took their homes.

00:06:01

This includes my colleague, Dave Brunkatcho, and his wife Mary, who lost her home in Altadena.

00:06:06

A key question is how to rebuild these homes in a way that best serves the community.

00:06:10

Without forethought and without coordination, we're going to risk a rebuild that amplifies the regions inequality and also puts people in Altadena at more risk from the changing environmental landscape.

00:06:28

That's UCLA, political scientist Megan Mullen.

00:06:31

David spoke with her as part of a reporting series on the recovery process, which you can hear on later shows.

00:06:37

And that's it from the Marketplace Morning Report from the BBC World Service.

00:06:41

I'm Eanna Burn.

00:06:42

Thanks for listening.

00:06:44

Ryan Reynolds here from Mint Mobile.

00:06:48

I don't know if you knew this, but anyone can get the same premium wireless for $15 a month plan that I've been enjoying.

00:06:55

It's not just for celebrities, so do like I did, and have one of your assistance assistants switch you to Mint Mobile today.

00:07:02

I'm told it's super easy to do at MintMobile.com/switch.

00:07:06

Upfront payment of $45 for three-month plan, equivalent to $15 per month required, intro rate first three months only, then full price plan options available, taxes and fees extra, feeful terms at MintMobile.com.

00:07:18

What is next for the Indian economy?

What is next for the Indian economy?

Marketplace / David Brancaccio and Leanna Byrne

We and our partners use cookies to personalize your experience, to show you ads based on your interests, and for measurement and analytics purposes. By using our website and our services, you agree to our use of cookies as described in our Cookie Policy.