Still a lot of weak issues have to be improved or reduced in the \u201ccontinent\u201d of India. Institutions (for example, quite a number of the new parliament members are even crime-suspected), poverty, the environment, agriculture with still more than 50 percent of total employment, income distribution, productivity, competitive manufacturing to a quite high extent \u2013 just to mention a few areas on a long list.<\/p>\r\n
Looking at all these challenges, the forthcoming five years will not be easy for the BJP, Prime Minister Modi and his allies. Political tensions exist mainly with Pakistan. Relations with China seem to be commercially pragmatic but not very good either (which is demonstrated by India\u2019s more or less total neglect of China\u2019s prestigiously favored Belt & Road Initiative).<\/p>\r\n
For the above-mentioned and quite a number of other reasons, India is certainly a country lagging institutional, educational and particularly financial resources to achieve rapid \u2013 i.e. at the same time fundamentally sustained – progress in production, infrastructure and the environment. High public debt on all levels is a frequently neglected impediment to even higher growth and to a more favorable distribution of income.<\/p>\r\n
However, the economy of India has the potential to improve further during a long period of time. Macroeconomic growth data alone, however, remain an insufficient analytical tool \u2013 a reality that many (Western) analysts to not apply the way they should. Not to forget India\u2019s demographic potential which – theoretically – is much more favorable than China\u2019s in the forthcoming decades.<\/p>\r\n
\u201cTheoretically\u201d because India also must create the necessary institutional and financial resources. And here we come back to the shortage issue of necessary resources \u2026<\/p>\r\n\r\n India\u2019s enormous elections to the Lower House (Lok Sabha) are over. The big winner is Narendra Modi from the hindu-nationalist BJP who even achieved absolute majority in the new Indian parliament. Modi\u2019s victory did not come as a major surprise \u2013 but the way he did it, including his very successful marketing. During Modi\u2019s previous […]<\/p>\n","protected":false},"author":174,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13622],"tags":[],"class_list":["post-2791","post","type-post","status-publish","format-standard","hentry","category-india"],"acf":[],"yoast_head":"\r\n\r\n\r\nHubert Fromlet<\/em><\/strong>\r\n<\/em>Affiliate Professor at the School of Business and Economics, Linnaeus University\r\nEditorial board<\/a>\r\n\r\n \r\n\r\nBack to Start Page<\/a>\r\n<\/em>","protected":false},"excerpt":{"rendered":"