In the 10 years that Mr Modi been in power, India’s economy has gone from being clubbed into a grouping called the “fragile five” to finding a place in the world’s top five. On the face of it, ‘Modinomics’ appears to be working. The country’s GDP is outpacing most other economies.
Its dilapidated infrastructure is getting a shiny fix with the government picking up a $100bn tab every year for road, rail and port construction. And the likes of Apple and Tesla are looking at the country as an alternative destination to China – part of a global diversification strategy adopted by Western MNCs.
But there are problems. Inequality is at a record high. Growth in household consumption is at a two-decade low. The private sector is not investing enough and jobs are hard to come by. The rich have gotten richer, while the vast majority remains poor, living on the margins of sustenance, with 800 million people living on food handouts.
Despite the mixed bag performance, business confidence in India remains high and the stock markets are soaring. As the citizens of the world’s most populous nation cast their vote, there’s no doubt the economy will hold a big sway on people’s minds.
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