Modi Could be India’s Deng Xiaoping, says Economist Arvind Subramanian

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Narendra Modi was the target of Patna blasts, says NIA chief www.ambitionias.com
  • 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.
  • 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:

  1. India USA Bilateral Relations
  2. GST
  3. MSP
  4. Inflation
  5. Deng Xiaoping
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