One of the main reasons for India’s current economic issues is the total absence of decent leadership in the country.
The country’s politicians are so busy in corruption that they can’t think or plan anything. This has led to the situation where massive imports have led to a total collapse in the domestic currency. Despite being a low income, labor surplus country, India imports massive amounts of low value added stuff which can be easily made in the country. This has led to a huge current account deficit leading to perverse policies of imposing high duties on imports of gold destroying India’s jewelry industry. The government should have raised duties on power equipment, toys and other low value added items. Instead the government seems hell bent on destroying one of India’s main export generators and benefiting the smugglers.
India’s useless leadership has again buckled to US pressure in allowing domestic content in only a part of the next phase of JNNSM. This has been done as USA has filed a case against WTO against India. Note USA has not filed cases against Canada and Europe which have similar policies. China which has destroyed the solar industry through massive subsidies managed to get a sweetheart deal with Europe. But India, which has seen its local manufacturing industry turn sick has not done anything. Solar panel manufacturing is not rocket science and can easily be done locally. But India’s government has not supported the industry unlike USA, China and others which have given billions of dollars. USA is hugely hypocritical supporting local panel makers like First Solar and Sunpower through huge grants and cheap EXIM loans. Instead of filing counter cases, India has decided to bury its local industry.