GRI Debate: Will Modi’s gradual economic reforms be effective?
Narendra Modi was elected as India’s PM on a wave of optimism in 2014. Since his election, Modi, previously known for his economic initiatives during his tenure as Chief Minister of Gujarat, has implemented some economic reforms but also run into structural issues. In this debate, GRI asked two of its top analysts to break down the effectiveness of Modi’s reforms and what they mean for the future of the Indian economy.
The case for why Modi will succeed at fixing India’s economy
Robert Shines presents the case for why Modi’s efforts are likely to succeed, as they leverage India’s importance to both the U.S. and China.
“Modi is looking to leverage Chinese initiatives to further integrate India not only with China, but also with Southeast Asia, Central Asia, and the Middle East. It is Modi’s patience and resistance to shock therapy prescriptions, as well as his willingness to reap economic benefits from both the U.S. and China that will allow India to reach its economic and geopolitical aspirations in the long run.”
Read the full article here.
The case for why Modi will fail at fixing India’s economy
Devesh Rasgotra presents why Modi’s efforts are likely to fail to address fundamental problems, given the nature of India’s political system.
“India’s GDP growth rate has exceeded 7 percent since Modi took office almost two years ago. The current GDP growth overstates the health of the Indian economy. Modi’s efforts take steps in the right direction, but promotion of India’s image is not where his focus should be. Modi misallocates attention and effort when launching a significant amount of branding initiatives without simultaneously trying to push forward real reform.”
Read the full article here.
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