India's Growth Dilemma: Balancing Trade, Rates and Education for Continued Expansion
• India should not put tariffs on computers as it is a big software exporter and computers are a basic input for software industries • Interest rates may remain elevated in 2023 as economies like India and the US are growing faster than expected • India has allowed poor quality colleges to proliferate while constraining good institutions, affecting human capital • Cities succeeding in the US have big universities that add to human and intellectual capital • The Fed may cut rates by March/April 2023 only if there is a drastic drop in economic activity