Chavan Criticizes Modi Amidst Global Market Turmoil

Former Maharashtra Chief Minister Prithviraj Chavan criticized PM Narendra Modi's handling of US relations as Indian markets slump following Trump's tariff announcements. Key indices Nifty 50 and BSE Sensex plummeted, with experts calling for a reform package to mitigate economic fallout from the global selloff.

In a strong rebuke, former Maharashtra Chief Minister and Congress leader Prithviraj Chavan lambasted Prime Minister Narendra Modi for his management of India's bilateral ties with the United States. This criticism came as the Indian stock market grappled with a severe downturn, triggered by US President Donald Trump's announcement of sweeping new tariffs. Chavan stated, "The Indian stock market has crashed significantly, opening roughly 3,000 points lower. This marks the fifth or sixth most significant downturn. Unfortunately, the Prime Minister relies heavily on his personal rapport with US President Donald Trump, believing diplomacy can be managed on such terms," he told ANI.

Chavan emphasized, "Global diplomacy doesn't function in this manner. The ongoing global recession poses serious risks to us, and mutual fund investors are set to incur significant losses." The Indian markets mirrored the global plunge in stock indices, with both domestic indices opening amid heavy selling pressure.

The Nifty 50 index experienced a 5 percent drop at the opening, one of the steepest declines since the onset of the COVID-19 pandemic, starting at 21,758.40 points—down by 1,146.05 points or 5 percent. Concurrently, the BSE Sensex recorded a 5.29 percent decline, opening at 71,379.8, falling by 3,984.80 points or 5.29 percent. Market experts argue that the government urgently needs to implement a reform package to steer the markets through Trump's tariff announcements.

Banking and Market Expert Ajay Bagga highlighted that India is vulnerable, not due to internal issues, but as part of an interconnected global portfolio. He stated, "India requires a comprehensive fiscal, monetary, and reform package to shield the domestic economy from this looming global economic chill." Bagga further explained the dramatic reactions across Asian markets, noting the enormous 5.4 trillion USD downturn over two days in US markets has set off a chain reaction, with Taiwan experiencing a 20 percent decline and Hong Kong witnessing a 10 percent drop, followed by some recovery.

Experts also indicated the necessity for the Trump administration to reconsider its stance, possibly rolling back the proposed tariffs or delaying their implementation. However, officials from the Trump administration appear steadfast, asserting the tariffs may remain for weeks or months. In other Asian markets, Japan's Nikkei 225 saw a sharp 5.79 percent drop. Concurrently, Hong Kong's Hang Seng Index saw a steep fall of approximately 10 percent, and Taiwan's Taiwan Weighted Index experienced a 9.61 percent decline in early trading.

Meanwhile, South Korea's KOSPI index decreased by 4.14 percent, and China's Shanghai Composite was down by 6.5 percent at the time of reporting. (ANI)

(With inputs from agencies.)