C. Marks Professor of International Studies Kaushik Basu discusses "India and the Mistrust Economy" in a New York Times opinion piece. Basu's research focuses on economic devlopment, theory, political economy and industrial organization with a specialization in developing countries. He has held numerous advisor positions with the World Bank, International Labour Association and the Indian government.
Basu's discussion in this Times piece stems from India's jump on the World Bank's rating of business-friendly countries. Despite this progress, he says India's economy is declining sharply.
"Narendra Modi came to power in 2014 on the back of the promise that if elected, he would make of India an economic powerhouse that would rival China," Basu writes. "This year, after being re-elected, he pledged to turn India into a $5 trillion economy, nearly twice its current size, by 2024.
According to official government data, however, the growth rate of national income for the second quarter of this year was only 5 percent, down from 8 percent a year before. The International Monetary Fund’s just-released World Economic Outlook cut India’s growth forecast for 2019 to 6.1 percent, down from the 7.3 percent that the organization had predicted in April. Between 2003 and 2011, growth averaged nearly 8.5 percent, well exceeding 9 percentevery year between 2005 and 2008. The recent turnaround is sudden and unexpected, and that is a cause for concern."
Read the full story on the New York Times website.