In 2014, the BJP won an absolute majority in the Lok Sabha elections. Five years later, they increased their majority. Now, they dominate the national landscape in a way not seen since the heyday of the Congress party, half a century ago.
How did this happen? And what are the party’s real objectives?
India has been presented with an historic opportunity. International firms are desperate to diversify away from China — and the most obvious place to go is India. So, is India set to boom? Arvind Subramanian and I address this question in a piece published in Foreign Affairs.
There is good news and bad news. The good news is that the Modi government has been busy addressing one of India’s key constraints: its lack of infrastructure. The bad news is that it has done little to address an even more important constraint: the country’s economic rules, which are excessively complex and inconsistently applied, making large investments extremely risky. In fact, the government has in one way made things worse, by promoting national champions, thereby discouraging investments by other domestic and foreign competitors.
The bottom line? Unless the government changes course, this historic opportunity is likely to pass the country by.
Consider yourself warned.
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