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New Delhi's Plan for Economic Recovery: What Is It, and Can It Work?
Despite its overwhelming victory in Parliamentary elections in May 2019, the Narendra Modi government continues to struggle to reverse a deepening economic slowdown underway for more than a year. On February 1, New Delhi presented a new budget and unveiled its strategy for dealing with the downturn, and for reviving investor and consumer confidence for the remainder of the government’s five-year term. Wilson Center Global Fellow and economist Suman Bery will analyze this new strategy and identify potential markers of success for the coming year.
Ahead of President Trump’s visit to India in February, the Wilson Center’s Asia Program hosted economist Suman Bery to discuss the causes and implications of the stagnation in India’s growth at a public forum on Tuesday February 19, 2020.
Facing a slowdown in growth, Prime Minister Narendra Modi is making efforts to reinvigorate India’s economic engine. Bery, who is a Global Fellow of the Asia Program, highlighted both domestic and external considerations, and noted the distinction between the hurdles of supply and demand within India. He pointed out that as India remains an economic powerhouse, Prime Minister Modi’s will need to continue his commitment to ensuring stability and providing a social safety net. In particular, he stressed the need for India to invest further in infrastructure development and in strengthening educational opportunities.
Questioned about opportunities or risks stemming from China’s decline, Bery said that whether intentional or not, India has benefitted from not being as integral to the global supply chain as some East Asian nations. He added that given the risks inherent to globalization, it would not be unwise for India to continue with its strategy to further its own division of a globally competitive economy, rather than simply focusing on greater integration into existing networks.
Summary written by Riku Kawakami, Asia Program Intern
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The Asia Program promotes policy debate and intellectual discussions on U.S. interests in the Asia-Pacific as well as political, economic, security, and social issues relating to the world’s most populous and economically dynamic region. Read more