Tuesday, May 10, 2016

Modi has impressed in India although he could have done more

Even if India grows at 6 per cent per year, it would see huge interest among investors. India has not seen much flows as global investors are underweight towards India. This is because between 2007 and 2013 India disappointed and it saw a weak currency. 

It’s not an easy task to evaluate the performance of a government because of the system Prime Minister Modi is operating in, which is highly bureaucratic and surrounded by red tape. I think he could have done some more reforms. In my view, elimination of subsidies is good and the Rural Employment Act should altogether be scrapped. Modi is not negative for the economy but it seems he is operating under some constraint. However, so far his performance has been good.