The Maths of India’s Reforms: Where to Next?
It is undeniable that Narendra Modi has reshaped both India and international perceptions of it during his three years in office as Prime Minister. Having been overwhelmingly voted into power in 2014 on the promise of economic growth, Mr Modi set out to execute a wide-ranging reform agenda focused on domestic development, securing foreign investment and playing a more proactive role in regional and international affairs. Based on macro-economic data alone, it would appear that Mr Modi’s BJP party has been on track to deliver on his promises. GDP growth has averaged 7.5% over the past three years, with growth fuelled, to a large extent by an inflow of US$175bn capital from foreign investors, making India both the world’s fastest growing economy and the largest destination for foreign direct investment. Further, the government has also taken steps across a wide swathe of areas such as infrastructure development, financial inclusion, digitisation, foreign investment and graft, in its bid to secure the country’s long-term growth potential. A previous Sign of the Times had assessed the BJP’s performance in terms of reforms at the 24 month mark following the general election. With less than two years to go until the next general election, this month’s Sign of the Times takes a closer look at India’s progress both economically and in terms of its reforms in order to assess the Modi government’s performance. More importantly, it identifies the core priorities yet to be addressed to make advances towards its medium to long term potential, thereby providing the agenda for the next stage in the journey.Read More Archived copies of Sign of the Times