US-based economists and business leaders have welcomed India’s latest Union Budget, describing it as a reinforcement of the country’s strong growth trajectory and a positive signal for global trade and investment. Observers also suggested that more ambitious measures could further boost India’s manufacturing competitiveness.
Steve Hanke, applied economics professor at Johns Hopkins University, noted that India’s impressive economic performance under Prime Minister Narendra Modi was expected. He referenced International Monetary Fund projections estimating India’s annual real GDP growth at approximately 6.45% between 2025 and 2030, the fastest among major economies. Hanke linked this outlook to India’s trade and growth-focused policies, emphasizing that the country’s rapid expansion would continue to attract international attention and capital.
Gunjan Bagla, CEO of US-India consultancy Amritt, described the budget as a positive step for international trade and investment. Bagla highlighted a nine percent increase in infrastructure spending, observing that improved logistics and connectivity would benefit foreign trade over time. He also welcomed a 15% rise in defense expenditure, noting that it would help India’s armed forces better respond to security threats, though hardware vulnerabilities remain a concern.
While appreciating the budget’s focus on manufacturing, Bagla suggested that a more aggressive approach across all sectors would have been beneficial. He stressed that broader support would enhance Indian factories’ ability to compete with Chinese manufacturers. Bagla praised Indian entrepreneurs for building remarkable companies over the past two decades and said that with the right policies, many more could emerge as global players.
“Manufacturing has the potential to create hundreds of millions of jobs in India,” Bagla said, underscoring that global markets should recognize India not only as a rapidly growing consumer market but also as a potential manufacturing powerhouse. Experts agreed that sustained investment in infrastructure, defense, and industrial sectors would be crucial for realizing this vision and solidifying India’s position on the world stage.
