Hindi English Translation || Editorial || ​Diversify now: On India and looming economic risks

​Diversify now: On India and looming economic risks

India needs to expand its trading base to overcome global headwinds (प्रतिकूल परिस्थितियाँ, रुकावटें)

February’s sharp rise in the monthly services Purchasing Managers’ Index (PMI) (क्रय प्रबंधक सूचकांक), to 59, has provided a welcome (स्वागत योग्य, सुखद) relief to investors and policymakers, following the rise in GDP (सकल घरेलू उत्पाद) growth numbers, released by the National Statistical Office (NSO) (राष्ट्रीय सांख्यिकी कार्यालय) for the December quarter (तिमाही, तीन महीने की अवधि) of the current fiscal (वित्तीय वर्ष, राजकोषीय) (Q3FY25). The strong rebound (recovery, revival, rallying, picking up, coming back (in value of something after decline)) in the services PMI, up from 56.5 in January, which marked (चिह्नित करना, दर्शाना) a 25-month low, helped offset (संतुलित करना, बराबर करना) the decline in the manufacturing PMI, which fell to a 14-month low of 56.3 in February. A PMI reading (record, figure, amount, measurement) above 50 signals expansion, while anything below this indicates contraction (संकुचन, गिरावट). The PMI survey, conducted every month by S&P Global across over 40 countries, is a key indicator of economic momentum (गति, तेजी). The fact that (यह तथ्य कि) manufacturing and services — sectors that have accounted for about 80% of India’s GDP since 2010 — remain in expansion mode is positive. This resilience (लचीलापन, दृढ़ता) persists (continue, carry on, go on, keep going) despite capital outflows (money/assets flowing out of (or leaving) a particular country’s economy) from Indian markets, suggesting (indicate, point to, signal, signify, denote) that the country’s economic fundamentals remain strong. A more telling (revealing, significant, important, striking, meaningful) indicator of long-term economic strength is the quarterly earnings of the Sensex (the benchmark index of the BSE in India. It was launched on January 1, 1986 as a basket of 30 stocks representing the country’s largest, financially-sound companies listed on the BSE. The term ‘Sensex’ is a blend of words ‘Sensitive’ and ‘Index’ and was coined by stock market expert Deepak Mohini), India’s benchmark (standard, base/basis, point of reference, criterion, ideal level/point, reference point (that is used to measure the change in an asset’s value or another metric over time) index (an (economic) data figure reflecting something (e.g. price/quantity) compared with a standard or base value; pointer, indicator) comprising 30 of the most valued and actively traded companies on the Bombay Stock Exchange (BSE) (the first and biggest securities Indian Market and was first established in 1875 as the Native Share and Stock Brokers’ Association. Based upon Mumbai, India). The Q3FY25 results point to solid (constant, stable, reasonable, sensible, decent) net profit growth for nearly all firms.

However, looming (appearing/emerging as a large/threatening one; imminent, impending, forthcoming, fast approaching) economic risks remain. The threat of reciprocal tariffs (a tax imposed by one country on the goods and services imported from another country) announced by United States President Donald Trump, and set to (be ready, be prepared) take effect on April 2, poses (present, constitute, cause, produce, give rise to (a problem/danger)) a challenge for the manufacturing sector. Meanwhile, the services sector is facing a different disruption: the rapid pivot (focus/focal point, foundation, cornerstone) to artificial intelligence (AI) (an area of computer science that deals with giving machines the ability to seem like they have human intelligence)-driven solutions. While the NSO reported 6.2% real GDP growth for Q3FY25, top executives from India’s leading IT firms have, at an industry event in Mumbai, cautioned that growth in the sector could be as low as 5.1% in FY25, up from 3.8% in FY24. Although this may seem concerning (worrying, alarming, unsettling, disquieting, distressing, disturbing) for an industry that has enjoyed a 16% compounded annual growth rate for nearly 25 years, it still represents an increase of $29 billion, bringing the sector’s expected value to $283 billion in FY25. In its 2025 Strategic Review report, NASSCOM has identified geopolitical (relating to (the study of) the geographical factors (a country’s position on the earth, size, climate, and natural resources &, etc.) in world politics and inter-state relations) upheavals (disruption, turmoil, disorder, chaos, mayhem) and rising tariffs as key challenges. But business leaders at the event attributed (connect with, associate with) much of the slowdown (economic decline, recession, slump/depression) to the disruptive impact of AI, which is reducing earnings from new contracts and reshaping hiring and training practices. India’s services and manufacturing sectors face a triple challenge: rapid technological transformation, increasing global protectionism (it is an economic policy where a country (state) imposes restrictions like tariffs, quotas, and subsidies to shield its domestic industries from foreign/inter-state competition), and the potential (possibility, potentiality, prospects) for a U.S. recession (economic decline, slowdown, downturn, depression, slump). This could have significant repercussions (consequence, result, effect, outcome, reverberation, fallout) for India, given (considering, taking into account, bearing in mind) that the U.S. remains its largest trading partner. To navigate (handle, steer, guide) these headwinds, India must urgently diversify its trading base.

Courtesy: The Hindu

Important Word List With Meaning

1.diversify (verb)

Hindi Meaning - विविधता लाना, विभिन्नता करना
English Meaning - vary, bring variety to; modify, alter/change, transform, expand, enlarge.

2.headwinds (noun)

Hindi Meaning - प्रतिकूल परिस्थितियाँ, रुकावटें
English Meaning - (in business) situations or conditions that make growth harder/difficult.

3.tailwinds (noun)

Hindi Meaning - अनुकूल परिस्थितियाँ
English Meaning - (in business) situations or conditions that move growth, revenues, or profits higher.

4.Purchasing Managers’ Index (PMI) (noun)

Hindi Meaning - क्रय प्रबंधक सूचकांक
English Meaning - Purchasing Managers’ Index or PMI is an economic indicator, which is derived after monthly surveys of different companies. The index shows trends in both the manufacturing and services sector. The index helps in determining whether the market conditions, as seen by purchasing managers, is expanding, contracting or staying the same. It is used to provide information regarding the current and future business conditions.

5.welcome (adjective)

Hindi Meaning - स्वागत योग्य, सुखद
English Meaning - pleasing, agreeable, favourable, promising, much needed.

6.Gross domestic product (GDP) (noun)

Hindi Meaning - सकल घरेलू उत्पाद
English Meaning - a measure of economic activity in a country. It is the total value of a country’s annual output of goods and service.

7.National Statistical Office (NSO) (noun)

Hindi Meaning - राष्ट्रीय सांख्यिकी कार्यालय
English Meaning - The Ministry of Statistics and the Department of Programme Implementation has two wings, one relating to Statistics and the other Programme Implementation. The Statistics Wing called the National Statistical Office (NSO) gives considerable importance to coverage and quality aspects of statistics released in the country. The statistics released are based on administrative sources, surveys and censuses conducted by the Center and State Governments and non-official sources and studies.

8.quarter (noun)

Hindi Meaning - तिमाही, तीन महीने की अवधि
English Meaning - a period of three months (considered as one-fourth of a year).

9.fiscal (noun)

Hindi Meaning - वित्तीय वर्ष, राजकोषीय
English Meaning - financial year.

10.mark (verb)

Hindi Meaning - चिह्नित करना, दर्शाना
English Meaning - indicate, signify, represent.

11.offset (verb)

Hindi Meaning - संतुलित करना, बराबर करना
English Meaning - even up, counterbalance, equalize, neutralize; make amends for, compensate for.

12.contraction (noun)

Hindi Meaning - संकुचन, गिरावट
English Meaning - In economics, it refers to a decline in national output as measured by gross domestic product.

13.momentum (noun)

Hindi Meaning - गति, तेजी
English Meaning - the increase in the rate of growth of something; strength, impetus.

14.the fact that (phrase)

Hindi Meaning - यह तथ्य कि
English Meaning - used to refer to a specific situation under consideration/discussion.

15.resilience (noun)

Hindi Meaning - लचीलापन, दृढ़ता
English Meaning - the ability to bounce back quickly from difficulties; strength of character, strength, toughness, buoyancy, adaptability.

16.looming (adjective)

English Meaning - appearing/emerging as a large/threatening one; imminent, impending, forthcoming, fast approaching.

17.loom (verb)

English Meaning - emerge, appear, become visible, take a threatening shape.

18.rebound (noun)

English Meaning - recovery, revival, rallying, picking up, coming back (in value of something after decline).

19.reading (noun)

English Meaning - record, figure, amount, measurement.

20.S&P Global Inc. (noun)

English Meaning - an American publicly traded corporation headquartered in Manhattan, New York City. Its primary areas of business are financial information and analytics; S&P Global, Inc. engages in the provision of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide. It operates through the following segments: Ratings, Market Intelligence, Platts and Indices.

21.account for (phrasal verb)

English Meaning - comprise, compose, constitute, make up.

22.persist (verb)

English Meaning - continue, carry on, go on, keep going.

23.capital inflow (noun)

English Meaning - a steady movement of capital (amount) into a place, economy, activity etc.

24.capital outflow (noun)

English Meaning - money/assets flowing out of (or leaving) a particular country’s economy.

25.outflow (noun)

English Meaning - money/assets flowing out of (or leaving) a particular country’s economy/ an organisation/company.

26.suggest (verb)

English Meaning - indicate, point to, signal, signify, denote.

27.telling (adjective)

English Meaning - revealing, significant, important, striking, meaningful.

28.Sensex (noun)

English Meaning - the benchmark index of the BSE in India. It was launched on January 1, 1986 as a basket of 30 stocks representing the country’s largest, financially-sound companies listed on the BSE. The term ‘Sensex’ is a blend of words ‘Sensitive’ and ‘Index’ and was coined by stock market expert Deepak Mohini.

29.benchmark (noun)

English Meaning - standard, base/basis, point of reference, criterion, ideal level/point, reference point (that is used to measure the change in an asset’s value or another metric over time.

30.index (noun)

English Meaning - an (economic) data figure reflecting something (e.g. price/quantity) compared with a standard or base value; pointer, indicator.

31.benchmark index (noun)

English Meaning - market index; combination of indexes that investors and portfolio managers use to measure an investment portfolio’s performance (or) a reference point used to compare the performance of a mutual fund.

32.Bombay Stock Exchange (BSE) (noun)

English Meaning - the first and biggest securities Indian Market and was first established in 1875 as the Native Share and Stock Brokers’ Association. Based upon Mumbai, India.

33.point to (phrasal verb)

English Meaning - indicate, suggest, signal, signify, denote, reveal.

34.solid (adjective)

English Meaning - constant, stable, reasonable, sensible, decent.

35.counter-tariff (or) retaliatory tariff (noun)

English Meaning - punitive tariff; an extra tariff/tax that a country charges on import goods from another country to punish the another country for charging tax on its own export goods.

36.reciprocal tax (noun)

English Meaning - a tax imposed by one country on imports from another country in response to similar tariffs. The tariffs aim to match or offset tariffs and other trade barriers imposed on US goods by foreign nations.

37.tariff (noun)

English Meaning - a tax imposed by one country on the goods and services imported from another country.

38.set to (verb)

English Meaning - be ready, be prepared.

39.pose (verb)

English Meaning - present, constitute, cause, produce, give rise to (a problem/danger).

40.pivot (noun)

English Meaning - focus/focal point, foundation, cornerstone.

41.artificial intelligence (AI) (noun)

English Meaning - an area of computer science that deals with giving machines the ability to seem like they have human intelligence.

42.concerning (adjective)

English Meaning - worrying, alarming, unsettling, disquieting, distressing, disturbing.

43.compound annual growth rate (CAGR) (noun)

English Meaning - growth of something (economy, investment, etc.) calculated over a period of years, showing the percentage increase for each year over the previous year.

44.National Association of Software and Service Companies (NASSCOM) (noun)

English Meaning - a not-for-profit industry association, is the apex body for the $245 billion (IT BTM) technology industry in India. NASSCOM’s primary focus is to strengthen the foundations of the industry, including innovation, market access, policy advocacy, talent, and inclusion.

45.geopolitical (adjective)

English Meaning - relating to (the study of) the geographical factors (a country’s position on the earth, size, climate, and natural resources &, etc.) in world politics and inter-state relations.

46.upheaval (noun)

English Meaning - disruption, turmoil, disorder, chaos, mayhem.

47.attribute (verb)

English Meaning - connect with, associate with.

48.slowdown (noun)

English Meaning - economic decline, recession, slump/depression.

49.protectionism (noun)

English Meaning - it is an economic policy where a country (state) imposes restrictions like tariffs, quotas, and subsidies to shield its domestic industries from foreign/inter-state competition.

50.potential (noun)

English Meaning - possibility, potentiality, prospects.

51.recession (noun)

English Meaning - economic decline, slowdown, downturn, depression, slump.

52.repercussion (noun)

English Meaning - consequence, result, effect, outcome, reverberation, fallout.

53.given (preposition)

English Meaning - considering, taking into account, bearing in mind.

54.navigate (verb)

English Meaning - handle, steer, guide.