Can India Capitalize on a Landmark 2014?
India had a landmark year in 2014. A new political, cultural and economic reality is emerging.
Category: India
India’s Modi Faces Challenges but Inspires Confidence
India’s economy, which has languished in middling growth for the past few years, is on the mend under new Prime Minister Narendra Modi.
After experiencing real GDP growth of less than 5 per cent in 2013-14, the Indian economy is expected to grow at nearly 5.5 per cent in 2014–15 and then record growth rates in the 6 to 6.5 per cent range until about 2018. The Reserve Bank of India governor, Raghuram Rajan, has been more sanguine: he expects growth to increase by 1 percentage point each year after 2015 until about 2017.
Prime Minister Narenda Modi’s Diplomatic Path within India
India’s Prime Minister Narendra Modi is seeking new ways to enhance India’s global diplomacy. Modi is pursuing two paths largely overlooked by analysts of India’s foreign policy: to connect with the Indian diaspora and to encourage links with subnational governments at state and city levels.
India’s Bilateral Investment Treaties Leave Room for Abuse
In December 2013, despite an ongoing official review of its existing agreements, the Indian government signed a bilateral investment treaty (BIT) with the United Arab Emirates. Information on the deal was recently made public by the Ministry of Finance after persistent efforts by civil society groups.
India Looking Beyond the end of QE in the U.S.
India was one of the hardest hit of the emerging markets after the US Federal Reserve first hinted it would cut back its quantitative easing program in May 2013. There were three reasons for this. First, global markets over-reacted. Second, India had many macroeconomic weaknesses. Third, since its capital markets were deep and liquid enough, they offered an avenue for portfolio managers targeting reduced exposure to emerging markets.
India’s Medium-Term Outlook Encouraging, Long-Term Prospects Look Promising
The perception about India has changed dramatically in recent months. There was widespread disenchantment with the lackadaisical leadership of the previous government that lacked a coherent economic strategy and vision to reinvigorate growth.
India’s Restrictive Labor Laws Challenge Investors
Investors find labour laws in India restrictive. Although progress has been made since reforms began in 1991, the labour market is still subjected to around 250 labour rules at the central and state level. India, a democracy, has found it harder than China — where labour laws are more flexible and business friendly — to undertake important reforms.
Can India’s Modi Strengthen the Relationship with Japan?
Since taking office, Prime Minister Narendra Modi has made efforts to entice foreign investment into India and to establish closer ties with Japan. Warm diplomatic gestures between Modi and Japanese Prime Minister Shinzo Abe have garnered considerable attention, with some commentators arguing that Modi’s recent visit to Japan marks the beginning of a new Indo-Japanese relationship aimed at countering China’s growing influence in the region. Others have referred to ‘India’s pivot to Japan’ and ‘Japan’s pivot to India’.
India’s Modi Makes His Maiden Speech before the UN General Assembly
Many have hailed Prime Minister Narendra Modi’s maiden speech to the United Nations General Assembly as a historic shift away from the speeches of past Indian heads of government. But in reality, Modi’s speech is more a continuation of the Indian government’s stance on many international issues, albeit with more flourish and charisma, which comes naturally to Modi when he speaks in Hindi.
India Needs to Pursue Meaningful Free Trade Agreements
When India began negotiations with ASEAN in 2004 for a free trade agreement (FTA) covering the goods sector, it marked a major step in the evolution of the country’s engagement with the global economy.
