{"id":23596,"date":"2015-01-11T23:08:42","date_gmt":"2015-01-11T22:08:42","guid":{"rendered":"http:\/\/www.w-t-w.org\/en\/?p=23596"},"modified":"2015-01-12T12:31:21","modified_gmt":"2015-01-12T11:31:21","slug":"23596","status":"publish","type":"post","link":"https:\/\/www.w-t-w.org\/en\/23596\/","title":{"rendered":"India Flexing Economic Muscles"},"content":{"rendered":"

Steven Hansen thinks the Indian economy looks strong.\u00a0 The election of Narendra Modi as Prime Minister in May 2014 has been what many believe a water shed election sweeping in a majority government for the first time since 1984. Narrow cast and religion voting patterns were set aside and the electorate opted to vote for promise of clean and effective governance.\u00a0 Modi is known for achieving results in his past elected positions – but not known as a great master planner.<\/p>\n

The appointment of Indian-American economist Arvind Panagariya to the key post in economic planning for India.\u00a0 Panagariya is a heavyweight on the stage of international economists.<\/p>\n

Modi administration’s performance since May 2014 has been mixed one. Politically reigning in what is called the “Saffron Family” has been tough who have at times worked at odds with Modi administration. Economically the country has stabilized. Inflation is down and India’s manufacturing PMI rose to 54.5 in December, 2014, while in the corresponding period a year ago it stood at 50.7, just above the crucial 50 mark which separates growth from contraction. Many in industry blame the super Hawkish Raghuram Rajan for throttling industrial growth.\u00a0 Modi has put together a heavy weight team which believes free market economy tempered by social spending to create inclusive growth for the third of the\u00a0world’s most extremely poor who live in India.<\/p>\n

From May 2014 when Modi got elected , the Super Hawk Raghuram Rajan has been running circles round Modi’s administration by keeping tight leash on money.\u00a0 Many believe that the Central Bank single handedly has almost frozen industry by crying wolf on inflation, completely ignoring the generally deflationary trend worldwide.\u00a0 In an ironic twist he has been now circled by the heavyweight Pangariya and his crack team who may have better handle on what needs to be done for the Indian Economy. Hopefully we should see the Indian Economy being unfrozen.<\/p>\n

Here are the positives:<\/p>\n