- Renowned economist Arvind Subramanian asserted that Prime Minister Narendra Modi could become the Deng Xiaoping of India.
- Deng Xiaoping analogy is based on these reasons.
- Firstly, Modi represents a decisive break from dynasty rule like Deng Xiaoping broke with the madness of Mao Zedong ideology
- Modi is decisive, pragmatic and is obsessed in getting things done
- Modi holds a long-term horizon for India like Deng
- Modi’s new government should drive the bureaucracy for efficient delivery for long-term growth.
- The key areas that need attention :
- The new government should focus on inflation control.
At 10 % inflation, there is no trade-off between inflation and growth, the double-digit inflation has taken a toll on the economy. - attract investments by clearing and accelerating projects.
- Slow down the raising MSP (minimum support price) price for wheat and rice as part of inflation-control measures as it is a big cause for high inflation.
- Roll out of GST and diesel subsidy to fill in the deficit,as unless fiscal deficit and inflation is brought down, interest rate should not come down.
- Address the deterioration in Indo-US relationship. Draw bigger strategies like civil nuclear agreement to boost relationship with the U.S. as its a huge market for Indians,who made about $50 billion money every year.
- The new government should focus on inflation control.
- If India grows at 8-10 % and integrates it well with other economies, it will help improve the relationship the U.S.
- Read at: http://www.thehindu.com/
todays-paper/tp-business/modi- could-be-indias-deng-xiaoping- says-economist-arvind- subramanian/article6055185.ece
Exams Perspective:
- India USA Bilateral Relations
- GST
- MSP
- Inflation
- Deng Xiaoping