Narendra Modi's "modest" steps unlikely to bring Indian economy back on track, comments The Economist

By A Representative
World’s top rating agency Standard & Poor may have lifted India's rating outlook to 'stable' from 'negative', with claims that this shows it acknowledges efforts by the Narendra Modi government to maintain fiscal discipline while reviving the economy and drumming up investment, influential British journal “The Economist” believes not enough has yet been done, and the new government’s “modest policies” will not bring back to nine per cent growth. The commentary comes when Modi is in the US, the stocks have returned following a three-day losing streak and the rupee showing signs of strengthening.
Continuing to offer strong views like before, The Economist, dated September 27 in an article titled “Reform à la Modi”, says, “When Narendra Modi’s Bharatiya Janata Party won a thumping majority for its pro-growth promises in India’s elections in May, hopes swelled that the new government would adopt economic reforms that had proved beyond the brittle coalitions of the past. Yet in defiance of the maxim that the boldest steps are best taken early, Modi has so far eschewed dramatic change.”
The Economist particularly notes, that the “cuts to subsidies (such as on fuel and fertilisers), which cost 2.3 per cent of GDP last year, have been deferred” and there is so far “no firm timetable for a national goods-and-services tax, which would boost GDP substantially by removing barriers to trade between India’s many states.”
The journal also takes objection to the fact that “caps on foreign direct investment in many areas, including supermarkets, remain in place.” Instead of taking strong decisions, it says, “the government has taken a series of small steps, ginning up India’s sluggish bureaucracy, for instance.”
Wondering if the chance to reshape India’s economy is “slipping away already”, the commentary says, despite a series of measures, the economy has been growing at 5.7 per cent “year-on-year”, but “that is not a sparkling rate for an economy that until a few years ago was growing at 9 per cent a year.” Though this is “a good deal better than in most places”, “the foreign money that washed out of India last year has returned”, and the “stockmarket has risen to record levels”, it adds, “Inflation is too high, at 7.8 per cent” and “the impetus for reform has slowed.”
No doubt, the journal says, “Modi has cracked heads” in the bureaucracy, and “many permits can now be obtained online”, and the result is that, “by the start of September the government had approved 175 stalled projects, according to Citigroup.” Yet, it says, “This good work was set back when, on September 24, the Supreme Court cancelled 214 of the 218 coal-mining licenses sold between 1993 and 2010.”
While giving credit to the Reserve Bank of India, especially to its UPA-appointed governor Raghuram Rajan, for taking steps to bring down inflation, The Economist warns, the new stability should help growth to pick up by not more than one per cent, from around 5.5 per cent this year to perhaps 6.5 per cent next year, and “unless the government does its part by adopting more radical reforms, the 9 per cent annual growth that India briefly enjoyed before the financial crisis is hard to imagine.”

Comments

Was Netaji forced to alter face, die in obscurity in USSR in 1975? Was he so meek?

By Rajiv Shah This should sound almost hilarious. Not only did Subhas Chandra Bose not die in a plane crash in Taipei, nor was he the mysterious Gumnami Baba who reportedly passed away on 16 September 1985 in Ayodhya, but we are now told that he actually died in 1975—date unknown—“in oblivion” somewhere in the former Soviet Union. Which city? Moscow? No one seems to know.

Love letters in a lifelong war: Babusha Kohli’s resistance in verse

By Ravi Ranjan* “War does not determine who is right—only who is left.” Bertrand Russell’s words echo hauntingly in our times, and few contemporary Hindi poets embody this truth as profoundly as Babusha Kohli. Emerging from Jabalpur, Madhya Pradesh, Kohli has carved a unique space in literature by weaving together tenderness, protest, and philosophy across poetry, prose, and cinema. Her work is not merely artistic expression—it is resistance, refuge, and a call for peace.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Asbestos contamination in children’s products highlights global oversight gaps

By A Representative A commentary published by the International Ban Asbestos Secretariat (IBAS) has drawn attention to the challenges governments face in responding effectively to global public-health risks. In an article written by Laurie Kazan-Allen and published on March 5, 2026, the author examines how the discovery of asbestos contamination in children’s play products has raised questions about regulatory oversight and international product safety. The article opens by reflecting on lessons from the COVID-19 pandemic, noting that governments in several countries were slow to respond to early warning signs of the crisis. Referring to the experience of the United Kingdom, the author writes that delays in implementing protective measures contributed to “232,112 recorded deaths and over a million people suffering from long Covid.” The commentary uses this example to illustrate what it describes as the dangers of underestimating emerging threats. Attention then turns...

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Rajiv Shah Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Echoes of Vietnam and Chile: The devastating cost of the I-A Axis in Iran

By Ram Puniyani The recent joint military actions by Israel and the United States against Iran have been devastating. Like all wars, this conflict is brutal to its core, leaving a trail of human suffering in its wake. The stated pretext for this aggression—the brutality of the Ayatollah Khamenei regime and its nuclear ambitions—clashes sharply with the reality of the diplomatic landscape. Iran had expressed a willingness to remain at the negotiating table, signaling a readiness to concede points emerging from dialogue.

Authoritarian destruction of the public sphere in Ecuador: Trumpism in action?

By Pilar Troya Fernández The situation in Ecuador under Daniel Noboa's government is one of authoritarianism advancing on several fronts simultaneously to consolidate neoliberalism and total submission to the US international agenda. These are not isolated measures, but rather a coordinated strategy that combines job insecurity, the dismantling of the welfare state, unrestricted access to mining, the continuation of oil exploitation without environmental considerations, the centralization of power through the financial suffocation of local governments, and the systematic criminalization of all forms of opposition and popular organization.

The kitchen as prison: A feminist elegy for domestic slavery

By Garima Srivastava* Kumar Ambuj stands as one of the most incisive voices in contemporary Hindi poetry. His work, stripped of ornamentation, speaks directly to the lived realities of India’s marginalized—women, the rural poor, and those crushed under invisible forms of violence. His celebrated poem “Women Who Cook” (Khānā Banātī Striyāṃ) is not merely about food preparation; it is a searing indictment of patriarchal domestic structures that reduce women’s existence to endless, unpaid labour.

The price of silence: Why Modi won’t follow Shastri, appeal for sacrifice

By Arundhati Dhuru, Sandeep Pandey* In 1965, as India grappled with war and a crippling food crisis, Prime Minister Lal Bahadur Shastri faced a United States that used wheat shipments under the PL-480 agreement as a lever to dictate Indian foreign policy. Shastri’s response remains legendary: he appealed to the nation to skip one meal a day. Millions of middle-class households complied, choosing temporary hunger over the sacrifice of national dignity. Today, India faces a modern equivalent in the energy sector, yet the leadership’s response stands in stark contrast to that era of self-reliance.

Search This Blog