Mumbai (Maharashtra) [India], April 7: Amid a global market meltdown triggered by sweeping new tariffs announced by US President Donald Trump, former Maharashtra Chief Minister and senior Congress leader Prithviraj Chavan on Monday came down heavily on Prime Minister Narendra Modi, criticizing his approach to foreign diplomacy and economic preparedness.
Speaking to ANI, Chavan remarked:
“The Indian stock market has crashed hugely. It opened up about 3,000 points down… This happens to be the 5th or 6th biggest fall in the stock market. Unfortunately, the PM is depending on his personal chemistry with US President Donald Trump, and he thinks that he can conduct diplomacy on a personal repo with the American President. Global diplomacy doesn’t work that way.”
He warned that the global recession induced by these tariffs would severely impact Indian investors, particularly mutual fund holders, who are now bracing for massive losses.
The Indian equity markets mirrored the panic seen across Asia. The Nifty 50 index plummeted 5% at the open, falling to 21,758.40 points, while the BSE Sensex crashed by 3,984.80 points, or 5.29%, opening at 71,379.8—among the steepest single-session drops since the COVID-19 pandemic.
Experts Urge Reform Package to Cushion Blow
Market expert Ajay Bagga emphasized that while the root cause is external, India will not be spared due to its interconnectedness with global portfolio flows:
“India will face the heat, not due to domestic reasons, but as an interlinked chain in the global portfolio flows… India will need a fiscal, monetary and reform package to protect the domestic economy from this global economic winter.”
He called the current situation the result of an “Economic-Nuclear policy” being unleashed by the US, with Trump’s tariffs amounting to the highest imposed in a century on global trade partners.
Bagga highlighted the scale of the damage, pointing to a USD 5.4 trillion loss in the US markets over just two days, and said this has sent shockwaves across Asia.
Asian Markets in Freefall
- Taiwan Weighted Index: Down by a massive 9.61%
- Hong Kong’s Hang Seng: Fell nearly 10% before minor recovery
- Japan’s Nikkei 225: Dropped by 5.79%
- South Korea’s KOSPI: Down by 4.14%
- China’s Shanghai Composite: Fell 6.5%
Experts noted that only a rollback or delay in tariff implementation by the Trump administration could help stabilize global markets. However, US officials signaled that the tariffs could remain in place for weeks or even months, fueling more volatility ahead.
Political Repercussions in India
With general elections approaching, the Modi government faces pressure not only to handle the diplomatic strain with the US but also to shield domestic investors and industries from the fallout. The opposition, seizing the moment, is likely to use this economic turbulence to question the government’s strategy on foreign policy, economic management, and investor protection.