Modi baiters echo economic slowdown, believers bet on GST tweaks, new growth impetus

The Prime Minister, Shri Narendra Modi addressing at the Golden Jubilee Year Celebrations of the Institute of Company Secretaries of India (ICSI), in New Delhi on October 04, 2017.

Reactions to the so-called “slowdown” of India’s economy are flowing thick and fast. Some are in the big brochures. Most of the time they are relying on the echo camera and quotes in expert reports and pieces of more elaborate online thinkers.

History of India goes sour is the new fetish. Blaming PM Moḍi’s economy is easier than regretting his policy.

For example, “India’s economy in” downward spiral. “What made Modi go wrong? It is the headline of a CNNMoney story that is unflinchingly appearing in Google’s search results.

The story (also) quotes from a report by SBI Research that said almost a month before the government admits a calm that the slowdown in not short-term wrinkle – “We certainly believe we are in a slowdown mode since September 2016 and a slowdown that has been prolonged to Q1 this fiscal year is technically not short-term in nature or even transitory. ”

India was the fastest growing economy in the world last year, posting GDP growth of 7.1 percent during the first quarter. Exactly at the same time last year, when Finance Minister Arun Jaitley was in Washington DC for the IMF’s autumn meetings, he told how a low-interest, low-GDP world seems impressed by India.

Some of them are still maintained because the rest of the world GDP perspective, in equilibrium, is still under 5 years.

But the point of the latest “vigorous debate,” as RBI Deputy Governor Viral Acharya describes the noise surrounding “deceleration” is not about the number per se but the elephant that may be hidden within the statistics.

Kaushik Basu, a former World Bank chief economist and professor of economics at Cornell University, says nothing in his commentary for Project Syndicate.

“Not long ago, India was an example for political stability and economic growth in emerging economies. Although the country had a long way to go to eradicate extreme poverty and inequality, when it came to sustained GDP growth , was among the strongest and most consistent in the world.

Basu, former chief economic adviser to the Indian government, appointed by Modi’s predecessor, compares 5.7% with neighboring economies. India, he says, is now linked to Pakistan and behind China, Malaysia and the Philippines, while Bangladesh is now growing by more than 7% annually. The numbers quoted by Basu are from The Economist.