A Global Verdict Exposing India’s Economic Illusion: International Media Reveals Modi Government’s Failure and Inconsistent Policies

The Wall Street Journal, a leading global financial newspaper, has delivered a damaging assessment of the Modi government’s economic performance, calling it inconsistent, underwhelming, and directionless. This is not regional criticism or political rivalry; it is a sober judgment from an international voice trusted by investors and policymakers worldwide. The report cuts through India’s loud claims and shows an economy driven by slogans, not solid reform. It exposes how India’s economic story collapses when tested by facts.

♦ Global Credibility Hit: When The Wall Street Journal raises doubts, it signals that India’s economic claims no longer convince serious global observers.
♦ Facts Over Noise: The report highlights the gap between big promises and weak delivery.
♦ Investor Warning: Such criticism clearly warns investors about policy risk and weak reform depth in India.

No Clear Free-Market Vision Under Modi

The report states plainly that India lacks a clear plan for a true free-market economy under Prime Minister Narendra Modi. Instead of deep change, the government relied on partial steps that did not fix the system. Heavy rules, state control, and policy confusion remained. This failure blocked growth and confidence.

♦ Half Measures Everywhere: Reforms touched the surface but avoided core problems in regulation and competition.
♦ Policy Confusion: Frequent shifts showed there was no steady economic roadmap.
♦ Lost Years: India wasted valuable time when global markets favored bold reform.

US Tariffs Lay Bare India’s Weak Economy

A major blow came in August 2025, when the United States imposed a 50 percent tariff on Indian goods, the highest applied to any major economy. This single move exposed how weak and uncompetitive India’s economy really is. Strong reforms protect countries from such shocks; India had no shield. The tariff embarrassed New Delhi and shattered its reform narrative.

♦ 50% Tariff Shock: The US tariff exposed India’s weak export base and poor competitiveness.
♦ Reform Myth Broken: Claims of strength collapsed under external pressure.
♦ Global Embarrassment: India stood exposed on the world economic stage.

Delayed, Weak, and Reversed Reforms

According to the report, many reforms were delayed, badly applied, or later reversed. Decisions came too late, often after damage was already done. Political fear repeatedly defeated economic logic. This made reforms useless.

♦ Late Banking Fixes: Banking changes came only after deep losses had spread.
♦ Policy U-Turns: Agricultural reforms were rolled back under pressure, showing weak leadership.
♦ Unstable Climate: Constant reversals scared both local and foreign investors.

GST and Banking Reforms Turned into Failures

India’s Goods and Services Tax (GST) was promoted as a major success, but the report calls it one of the government’s biggest failures. Instead of simplifying taxes, GST became more complex than global VAT systems. Banking reforms were also slow and reactive. Businesses paid the price.

♦ Complex GST: The tax system remains confusing and costly for traders and firms.
♦ Banking Damage: Delayed action worsened losses and bad loans.
♦ Small Business Pain: Local businesses suffered most under poor planning.

Labour, Land, and Privatisation: Big Talk, No Action

The report criticizes India’s failure to reform labour laws, land rules, and state companies. Labour reforms avoided hard decisions, land reforms stayed stuck, and privatisation largely remained empty talk. These failures blocked productivity and jobs.

♦ Labour Reform Avoided: India refused tough steps needed to improve hiring and jobs.
♦ Land Reform Frozen: Old land rules still block investment.
♦ Privatisation Illusion: Loss-making state firms keep draining public money.

Energy Sector and Bureaucracy Still Broken

The energy sector was exposed as another area of failure. Despite repeated claims of reform, state-run power utilities remain in severe financial distress. Bureaucratic changes were called superficial, with no real improvement in efficiency. This shows deep governance failure.

♦ Power Sector Losses: Electricity companies continue bleeding money.
♦ False Reform Claims: Announcements failed to bring real change.
♦ Slow Bureaucracy: Red tape still controls decision-making.

Protectionism and High Tariffs Hurt Competitiveness

The report highlights India’s preference for high tariffs and protectionist policies. Instead of opening markets, India closed them. This reduced competition, raised costs, and hurt exports. Protectionism weakened innovation.

♦ High Tariffs: Indian products became less competitive globally.
♦ Closed Markets: Protection discouraged efficiency and quality.
♦ Export Weakness: India failed to build strong global supply links.

Symbolic Reforms Instead of Real Change

In its conclusion, The Wall Street Journal warned that India pursued symbolic reforms rather than real structural change. The Modi government ignored early criticism and chose half-measures. Window-dressing replaced real action. The paper stressed that India now needs a full economic overhaul, not slogans.

♦ Style Over Substance: Headlines mattered more than hard reform work.
♦ Ignored Warnings: Early criticism was brushed aside.
♦ Urgent Overhaul Needed: Without deep reform, stagnation looms.

What This Global Verdict Means for India

This assessment is a serious blow to India’s carefully built image. When a respected global paper exposes weak reforms, it affects confidence, investment, and credibility. India can no longer hide behind speeches and rankings. The facts are now openly recorded.

♦ Trust Damage: Global trust in India’s policy direction has weakened.
♦ Economic Risk: Poor reform raises long-term growth risks.
♦ Reality Exposed: India’s economic story stands exposed as hollow.