If you are looking for expert comment on India’s new budget Dr Nathan Subramanian researches the Indian economy.
Dr Subramanian said: “Narendra Modi has come in as Prime Minister promising to bring about the same economic success for India that he achieved in the state of Gujarat. He has set a clear action-based agenda with a particular focus on accountability and transparency to address the problem of corruption, remove the roadblocks created by bureaucracy, and make major investments in infrastructure including building up to 100 new cities, power generation, ports, railways and roads.
“If he delivers on this agenda or even a portion of it – and there is no reason for him not be able to given his track record in Gujarat – it is likely to result in one of the most extraordinary transformations of a nation in recent history, no different to what has happened China, creating significant investment opportunities for international investors and countries across the world.
“While India did manage to achieve GDP growth rates of eight to nine per cent from 2003 to 2010 due to small doses of liberalisation, the growth rates have fallen back to below five per cent in recent years due to an inability to sustain the liberalisation and further opening up of the economy that was required. It almost began to look like another episode of unrealised potential in India.
“In the meantime, Modi was in charge of the most successful and dynamic state in India. During his tenure as Chief Minister, Gujarat became the favourite destination for business investment within India both for domestic as well as foreign investors, enabling the state to achieve a blistering pace of growth, higher on average than most other states of India.
“Modi has also shown himself to be action oriented. He was able to cut through swathes of bureaucracy to ensure quick decisions were taken on critical matters when he was Chief Minister, not a mean achievement in India with its rigid bureaucracy, which is often blamed for the lower level of investments in India as compared to China.”
