There are signs of deep malaise in the Indian economy. Growth is slowing significantly and there is currently little fiscal space available to the government to spend more. Corporate and household debt is rising, and there is deep distress in parts of the financial sector. Unemployment, especially amongst youth, seems to be growing, as is the accompanying risk of youth unrest. Moody’s just sounded the alarm on India’s credit rating. Given that in late 2017, even after the economically ill-advised demonetisation and the poorly implemented roll-out of the Goods and Services Tax (GST), Moody’s had upgraded India’s sovereign rating, it can hardly be accused of bias. Repeated government allusions to a $5 trillion economy by 2024, which would necessitate steady real growth of at least 8-9 per cent per year starting now, seem increasingly unrealistic. What is going wrong, and how do we fix it?
The government’s economic travails seem to contrast with its successes—until the recent debacle in Maharashtra—on its political and social agenda, including effectively abrogating Article 370 and building the Ram Mandir in Ayodhya. Yet these might be two sides of the same coin—the reasons why the government has succeeded in its political and social agenda may indeed also be why it has not delivered on its growth ambitions.
LEGACY PROBLEMS
Esta historia es de la edición December 16, 2019 de India Today.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición December 16, 2019 de India Today.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor? Conectar
The Forbidding Fruit
The disturbed snow cycle, the price of imported urea, cheaper imports from the South Asian neighbourhood-the whole world, it would appear, has been conspiring against the apple farmers of Himachal Pradesh.
Chicken Soup for the Heart
Former veejay, actor and now travel influencer, Shenaz Treasury is out with a book based on past romances-All He Left Me Was a Recipe
CITY OF DREAMS
This anthology of stories about Mumbai is like the city itself-crowded and chaotic, but ultimately illuminating
Diverse Vignettes
Edited by Arunava Sinha, The Penguin Book of Bengali Short Stories is a landmark new anthology which includes several previously untranslated works
A BREATH OF FRESH PERSPECTIVE
Ganesh V. Shivaswamy brings a sharp and balanced approach to his three volumes on Raja Ravi Varma
Time Travel
An exhibition in Bengaluru is showcasing an unseen artwork by legendary artist Raja Ravi Varma
INDIA AT CANNES 2024
The 2024 Cannes Film Festival marks the first time in 30 years that India has a feature film in the Palme d'Or competition section. And there's lots more...
Cusp of Greatness
Shriya Pilgaonkar comes into her own as an intrepid reporter in Zee5's The Broken News
THE GREAT DISRUPTOR
Rapper SlowCheeta is trying to shake things up with his EP, Scene Mein Bawaal
Back to Roots
Known for his lavish musicals, theatre director Feroz Abbas Khan returns to classic theatre with his latest, Letters of Suresh