How India's Economy Works – Details, episodes & analysis

In this episode, Puja Mehra speaks with economist Dr. Rajat Kathuria about the evolving landscape of India-US trade relations and the broader challenges of global economic engagement. Kathuria explains how India must balance political sensitivities in sectors like agriculture while ensuring competitive access to the US market. He highlights the importance of tariff reductions, strategic concessions, and diversification in trade and energy imports to attract investment and strengthen economic resilience. The discussion also delves into the role of media in shaping economic narratives and the lessons India can learn from China’s measured rise. Kathuria emphasizes India’s intrinsic entrepreneurial talent, frugal innovation, and the need to engage in global trade frameworks like CPTPP and RCEP. Tune in for insights on how India can leverage its strengths to become a leading global economic power.

(00:00) Introduction

(01:15) The Politics Behind India–US Trade Relations

(04:40) Why Agriculture Is Always a Sticking Point

(08:05) The Role of Tariffs and Market Access

(11:20) What India Can Offer the United States

(14:35) Mini Deals vs. Comprehensive Trade Agreements

(17:10) How Global Trust Has Broken Down Since the Pandemic

(20:25) India’s Strategy for Building Economic Resilience

(23:45) The Importance of Diversifying Energy and Trade Partners

(26:30) Media Narratives and Policy Misunderstandings

(29:10) Learning from China’s Measured Global Strategy

(31:45) Redefining India’s Red Lines in Trade Negotiations

(33:00) Why Rajat Kathuria Remains Optimistic About India’s Future

(34:56) Conclusion

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In this episode, economic journalist and author Puja Mehra speaks to Aurélien Kruse, Lead Economist of the Economic Policy team in India at the World Bank and lead author of its recent report on India. The conversation unpacks how India can break out of the middle-income trap, why small firms struggle to scale up, and what stalled reforms on land, labour, and credit mean for the country’s competitiveness.

They also discuss whether India’s large domestic market is enough to drive growth, the limits of tariff-led industrial policy, and why inclusive development—not just fiscal incentives—will ultimately determine the size of India’s consumer class and its ability to attract sustained private capital.

Tune in for insights on what it will take to reignite private investment, implement reforms that actually deliver, and unlock India’s long-awaited growth potential. This episode offers both a reality check on India’s reform story and a roadmap for policymakers to create a more predictable, investment-friendly future.

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In this episode, author and journalist Puja Mehra speaks to trade policy expert Abhijit Das about what’s at stake for India in its free trade agreement (FTA) with developed economies like the UK. Why do countries push for non-trade clauses such as labour, environment, and gender standards in trade deals? How do intellectual property (IPR) obligations affect India’s ability to innovate? Drawing on his deep experience in global trade negotiations, Professor Das explains how developed countries often mask protectionist aims behind values-based clauses, how stringent standards can become new barriers to exports, and why India must be cautious about TRIPS-plus commitments. They also discuss how much FTAs actually contribute to export growth, and why domestic reforms—like cutting red tape and improving logistics—matter more for India's trade ambitions. Tune in for insights on how the fine print of FTAs can shape India’s economic future.

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In this episode, journalist Puja Mehra speaks to economist and Director of the Delhi School of Economics, Ram Singh about why India's income tax base remains so narrow. Why do the richest Indians pay a smaller share of their income in taxes than the middle class? Drawing on his research, Ram Singh explains how India's tax system unintentionally favours the wealthy, and why income reporting becomes less honest as wealth increases. They talk about changes in compliance between 2014 and 2019, the role of GST, digital trails, and behavioural nudges like faster refunds in improving tax honesty. Should India introduce a wealth tax to plug the gap? Is the current tax structure fair? And what policy tweaks could make India’s tax regime more equitable without causing unintended harm? Tune in for insights on the disparity, psychology, and economics of taxation in India.

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In this episode, journalist Puja Mehra speaks to economist and competition law expert Payal Malik about India’s push to become an AI powerhouse. While India has advantages in data and digital talent, Malik argues that inadequate computing infrastructure, limited R&D spending, and over-reliance on big tech threaten to stall its progress.

They discuss how initiatives like AIRAWAT aim to build indigenous capacity, but without strong competition policy and sustained investment in innovation, India risks repeating past mistakes—ceding control of critical digital infrastructure to global giants. With countries like China far ahead in AI funding, Malik warns that unless India builds open, contestable markets and ramps up support for startups, its AI ambitions may remain just that—ambitions.

Tune in for analysis of the political economy shaping India’s AI future.

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In this episode, author and journalist Puja Mehra speaks to trade policy expert Abhijit Das. President Donald Trump's Liberation Day, as Trump calls it, is a serious blow to the rules-based global trade order that the US had led as a champion of free trade for 80 years. This trading system was biassed against developing countries like India and in favour of developed countries, but the rise of low-cost manufacturing in China has meant that the US no longer dominates the world economy. At the core of Trump's blow to the trading system is the US' frustration over unequal market access.  What are the implications for India? Is the old world trade order lost forever? What should replace it? Tune in for insights into the current state of Trump's trade war.

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In this episode, author and journalist Puja Mehra speaks to Journalist and Consulting Editor at Business Standard, Subhomoy Bhattacharjee. They discuss the deficiencies within the power sector, why it is incurring losses, the parallels between Power Sector Policy and GST policy, how the power sector disincentivises business and much more. Tune in for insights into the absurdities into one of the most important sectors of the economy.

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In this episode, author and journalist Puja Mehra speaks to trade policy expert Abhijit Das. They discuss the recent spat of Trump Tariffs, the implications it has for the world and how it fits in the context of the overall US trade strategy. Tune in for insights into the current state of Trump's trade war.

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In this episode, author and journalist Puja Mehra speaks to Raghavan Srinivasan, journalist and former editor for The Hindu Business Line. They discuss the factors and history that gave rise to China’s domination in Global car manufacturing. They also talk about the role of the US, and the opportunities that India might have in this sector.  Tune in for a discussion that clarifies and simplifies the tide that is turning in the automotive sector.

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In this episode, author and journalist Puja Mehra speaks to economist Rajeswari Sengupta to scrutinize the government's fiscal strategy in the latest budget. Sengupta offers candid insights on how the shift from transparent fiscal deficit targets to a more opaque debt-to-GDP approach—coupled with expenditure cuts and generous tax reliefs—is unlikely to spur growth. Tune in for a discussion that goes into the arithmetic of fiscal management, the risks of masking structural weaknesses, and the broader implications for India's economic future.

ABOUT RAJESWARI SENGUPTA

Rajeswari Sengupta is currently an associate professor of economics at Indira Gandhi Institute of Development Research (IGIDR). Her research focuses on policy-relevant issues of emerging economies in general and India in particular, in the fields of empirical macroeconomics, international finance, monetary policy, banking and financial institutions, firm financing and national accounts measurement.

In the past she has held research positions at the Institute for Financial Management and Research (IFMR) in Chennai, San Francisco Federal Reserve, the World Bank, the International Monetary Fund (IMF) in Washington DC and Reserve Bank of India, Delhi. She was a member of the research secretariat to the Bankruptcy Law Reforms Committee that drafted India's Insolvency and Bankruptcy Code (IBC, 2016). She has published in reputed international journals such as Journal of Money, Credit and Banking, Economic Policy, Journal of International Money and Finance, The World Economy, Emerging Markets Review, Pacific Economic Review, Open Economies Review as well as the Economic and Political Weekly in India. She has also written chapters in various books published by the Asian Development Bank, G20, the Centre for International Governance Innovation (CIGI), among others.

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