The Wall Street Journal sharply criticized India’s timid economic reforms under Prime Minister Narendra Modi, calling them insufficient and reactive. Experts said the government failed to present a bold vision for free markets. U.S. tariffs of 50% on Indian goods, imposed in August 2025, exposed India’s overregulated economy and protectionist policies, highlighting New Delhi’s chronic policy failures.
The report said Modi’s reforms have been delayed, piecemeal, and largely cosmetic. Many measures merely patch problems created by previous government policies instead of delivering fundamental economic change. GST reforms remain overly complex, years after experts warned they would hurt small businesses, showing India’s bureaucratic inefficiency and lack of long-term planning.
Labor reforms avoided significant changes, favoring partial concessions that barely benefit small and medium enterprises. Non-tariff barriers proliferated under Modi, aggravating trade disputes with the U.S. Banking sector reforms, insurance, and nuclear FDI were introduced too late, while power-sector promises repeatedly failed, leaving state electricity firms in deep financial trouble.
The Journal highlighted that India repeatedly chooses cosmetic tweaks over meaningful reforms. Agricultural liberalization was rolled back under political pressure, and major reforms in subsidies, land acquisition, and public-sector privatization remain stalled. Protectionist policies and high tariffs continue to weaken competitiveness and harm the global trade image of India.
Analysts conclude that India risks economic stagnation unless it undertakes a full overhaul. The WSJ urged Modi’s government to implement bold reforms across agriculture, labor, land, subsidies, and state enterprises, warning that incremental changes will not restore credibility or sustainable growth.
