Agenda For Modi 2.0
Business Today|June 16, 2019

Top economic experts debate how the government can hit the ground running.

Agenda For Modi 2.0

As Prime Minister Narendra Modi prepares to start his second five-year term, what should his economic priorities be? In some ways, the challenge he is facing is perhaps bigger than when he took charge in his first term. In May 2014, the economy was slowly beginning to recover and there was hope a decisive government with full majority could bring in the kind of reforms that the past two coalition governments had failed to deliver.

The Prime Minister and his economic team did manage to bring most things under control in the first two years of the tenure, with some help from benign crude prices. Inflation and fiscal deficit were both tamed. Current account deficit started to narrow. Growth shot up as the government spent heavily on infrastructure.

However, despite reforms such as the Goods and Services Tax (GST) and the Insolvency and Bankruptcy Code (IBC), the second half of the term was plagued with multiple problems. Growth has once again started to slow down. That in itself is not worrisome because even now India is growing faster than all major economies. The problems that confront the new government are agricultural and rural distress, rising unemployment, the lack of appetite in the private sector for investing in new projects, and finally, both low consumption and low household savings rate. Then there are exports where India has never performed well and where the report of the past five years is mediocre.

On all these, the new economic team of Prime Minister Modi will have to come up with short-term as well as medium- and long-term plans that can be acted upon. In the following pages, we look at each of the issues in detail.

AGRARIAN CHALLENGE

THE GOVERNMENT WILL HAVE TO TAKE PREPARATORY STEPS TO MINIMISE RURAL DISTRESS IN VIEW OF A POSSIBLE WEAK MONSOON.

By JOE C. MATHEW

Esta historia es de la edición June 16, 2019 de Business Today.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición June 16, 2019 de Business Today.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE BUSINESS TODAYVer todo
"Focus on the challenge of each customer"
Business Today India

"Focus on the challenge of each customer"

SHASHANK KUMAR MD & CO-FOUNDER I RAZORPAY Razorpay is India's first full-stack financial solutions company

time-read
1 min  |
December 08, 2024
PEDAL ON THE FUTURE
Business Today India

PEDAL ON THE FUTURE

THE MG WINDSOR EV, WITH ITS FUTURISTIC AND MINIMALIST DESIGN, COMBINES THE BEST OF BOTH WORLDS-COMFORT AND TECHNOLOGY

time-read
1 min  |
December 08, 2024
BREATHE EASY
Business Today India

BREATHE EASY

Whether you're battling allergies, looking to remove pollutants, or simply want to breathe easier, the right air purifier can make a difference

time-read
2 minutos  |
December 08, 2024
The Taste of India in a Glass
Business Today India

The Taste of India in a Glass

FROM ROYAL LIQUEURS TO DISTILLED MAHUA, INDIAN HERITAGE ALCOHOLIC BEVERAGES ARE HAVING THEIR DAY IN THE SUN

time-read
4 minutos  |
December 08, 2024
LOOK BEFORE YOU LEAP
Business Today India

LOOK BEFORE YOU LEAP

IN 2025, INVESTORS WILL NEED TO FACTOR IN VOLATILITY ACROSS ASSET CLASSES

time-read
5 minutos  |
December 08, 2024
MISSING ADVISORS
Business Today India

MISSING ADVISORS

INDIA HAS JUST ONE INVESTMENT ADVISOR FOR NEARLY EVERY 200,000 INVESTORS. AT A TIME WHEN RETAIL PARTICIPATION IN THE STOCK MARKETS IS BOOMING, THIS ASSUMES SIGNIFICANCE

time-read
7 minutos  |
December 08, 2024
TURNING A CORNER
Business Today India

TURNING A CORNER

SHARED ELECTRIC MOBILITY START-UP YULU'S SHIFT TO SERVICING THE QUICK COMMERCE SECTOR IS HELPING IT GROW FAST. IT IS NOW FOCUSSING ON IMPROVING ROAD SAFETY FEATURES AS IT TURNS EBITDA POSITIVE

time-read
5 minutos  |
December 08, 2024
REALITY CHECK
Business Today India

REALITY CHECK

INDIAN STOCK MARKETS PLUNGED BEGINNING OCTOBER FOR A HOST OF REASONS, INCLUDING A FALL IN FII OWNERSHIP. HOW DEEP WILL THE CORRECTION BE?

time-read
6 minutos  |
December 08, 2024
TRUMP'S TRADE TANGO
Business Today India

TRUMP'S TRADE TANGO

The return of Donald Trump as the 47th President of the US has put the global economy on edge. India, too, is unlikely to remain unaffected. How will policymakers meet this latest challenge?

time-read
9 minutos  |
December 08, 2024
"The essence of the Trump administration will be transactional”
Business Today India

"The essence of the Trump administration will be transactional”

Global investor, analyst, and best-selling author Ruchir Sharma decodes why Donald Trump won the elections, what India should do, the risks, and more

time-read
10 minutos  |
December 08, 2024