The US retreat from its tariff face-off is less a capitulation by India, and more a convergence of constraints. We conceded selectively. Market access in specific agricultural items, limited easing on digital trade frictions, and calibrated procurement openings being tactical, not structural. Our core industrial policy, subsidy framework, and data sovereignty are intact. Of significance, we avoided across-the-board tariff dismantling to preserve policy space for MSMEs and manufacturing-linked incentives. The US, by contrast, secured modest commercial gains in retreating from a hard line that risked domestic inflation and supply-chain disruption. In that sense, Washington needed the deal as much as New Delhi. Our recent FTAs with others may well have made the US see reason. The real test lies not in concessions made, but in leverage retained.

R Narayanan

Navi Mumbai

Rewarding efficient States

Apropos ‘Fair balance’ (February 4), the 16th Finance Commission strikes a reasonable balance by slightly rewarding better-performing southern and western States through the new GDP contribution criterion (10 per cent weight) and a modest reduction in income distance weight to 42.5 per cent from 45 per cent. At the same time, it keeps equity intact with population at 17.5 per cent and income distance still dominant, ensuring poorer States are not unduly penalised. This gradual shift promotes efficiency without drastic changes, addressing long-standing grievances. To strengthen cooperative federalism further, the Centre should limit cesses and surcharges that shrink the divisible pool and encourage States to improve own revenue mobilisation through better governance. Such steps would build trust and fiscal discipline.

SM Jeeva

Chennai

Mental health issues

This is with reference to ‘Address mental health issues early’ (February 4). The Budget has finally recognised the importance of mental health. However, hardly any attention is paid to the mental health of students. Due to gruelling academic sessions, students are often under stress and hence harassment of any type may drive them to committing suicide. Hence whenever any student shows signs of depression or differential behaviour they should be immediately counselled by qualified counsellors. The government should appoint counsellors in all educational institutes, and if need be also take the help of psychiatrists and NGOs to assist the students.

Veena Shenoy

Thane

Published on February 4, 2026