NATIONAL security rests on strong defence and a strong economy. In May, our armed forces delivered on defence. It is now time to serve the citizens and fix the economy. Tariff reform announced in Budget 2025-26 is an important step, but is highly vulnerable to attacks by powerful lobbies.

A core economic weakness is that our industry creates far fewer jobs compared to the number of people joining the workforce. A related vulnerability is that we don’t export enough and borrow heavily to plug the current account deficit.

These problems stem from low industrial productivity and the loss of international competitiveness. So, unlike Turkey and recently Vietnam, our industry cannot tap into the global market to create domestic jobs. The current industrial structure thus erodes national security, instead of strengthening it. How did we get there?

Right up to the 1990s, we were star performers. Our export-to-GDP ratio was the highest in South Asia, barring Sri Lanka, and industrialisation was progressing well.

The spending binge of the 2000s, financed by the 9/11 windfall and rupee appreciation, started to erode competitiveness. Then came the energy crisis of 2007 that further raised costs. Industry was now looking for a........

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