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Modi’s growth mythology needs a reboot
Focus should switch to India’s multitude of consumers and away from the China investment model.
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Focus should switch to India’s multitude of consumers and away from the China investment model, says the writer.
PHOTO: AFP
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Andy Mukherjee
India’s economy needs a readjustment, and not just in fiscal and monetary policies. The whole folklore around emulating China’s multi-decade investment boom is proving to be illusory. With growth at its weakest pace in four years, it’s time to put that legend to rest, and start helping ordinary families keep their heads above water.
Around this time last year, I wrote about India’s growth with Chinese characteristics: anaemic consumption and overemphasis on investment. Back then, the myth of an impending tsunami of capital expenditure was still trumping the reality of a sharp slowdown in retail spending, and Mr Narendra Modi was about to launch his bid for a third five-year term.
