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Narendra Modi: How PM Modi won the Indian elections but paralyzed the economy: Nikkei Asian Review | India Business News


NEW DELHI: In your latest cover story, Japan’s Nikkei Asian Review said that Prime Minister Narendra Modi may have won the election, but his policies have paralyzed India’s economy. It focuses on how the victories of his party in 2014 and 2019 (with a greater mandate) have not helped resolve India’s economic crisis.
Excerpts from the article:
– “Political and economic crises are closely intertwined. When Narendra Modi became prime minister at the head of the Bharatiya Janata Party in 2014, he promised to do for India what he did for his home state of Gujarat, where he had presided over economic growth.”
– “That boom did not materialize during his first term, which was marred by a failed rollout of a sales tax and the cancellation of most banknotes, which, in cash-centric India, hit particularly hard. Regardless, he was reelected with a large majority in 2019. ”
– “However, what Modi transferred from his time in Gujarat was inter-community violence. In 2002, while Modi ran the state, at least 1,000 people died in clashes between Hindus and Muslims.”
– “… instead of using its mandate to meet the growing economic challenges, the Modi government has doubled in Hindutva, its populist Hindu nationalist agenda. Backed by Rashtriya Swayamsevak Sangh, a Hindu ultranationalist group seen as a ideological driving force behind Hindutva, has revoked the autonomous state of Jammu and Kashmir, changed the country’s citizenship laws to deny recognition to Muslim immigrants from neighboring countries and tried to make Hinduism fundamental to the values ​​and identity of India. Almost all of the government’s political capital has been thrown into this massive social project. Economic reform has been on the way. ”
– “Prime Minister Modi won the election,” said an executive at a Mumbai venture capital fund. “But he lost the economy.”
Boom to burst
– “Signs of India’s economic decline are visible in the Mumbai mall. Cranes on skeletons of residential towers have been stationary for months, as developers struggle to gain credit in the face of lackluster demand.”
– “In the field there are similar signs of suspended activity. Demand for major purchases like tractors has softened, while sales of even the cheapest everyday items have been weak.”
(Read the full report)

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