For at least a year now, it has been clear that the Indian economy is not doing well. The rupee is weak, capital is fleeing the country, private domestic investment is laggard, consumption demand is sluggish, manufacturing is stagnant, economic disparities between the rich and the not-so-rich are widening rapidly.
The share values of the top IT companies are falling due to the threat that Artificial Intelligence poses to their business model. The mood in the stock market reflects these manifold problems, with the main indices where they were two years ago.
An awareness of these multiple challenges has led to a stream of articles by professional economists urging the Modi government to acknowledge the depth of the problems we face, and initiate appropriate reforms.
Such articles have become more frequent after the onset of America’s war on Iran which has led to deep uncertainty in the oil, gas, fertiliser and other commodity markets, adversely affecting our trade balance and creating shortages.
The war has also reduced remittances, leading to a further dip in our foreign exchange reserves.
The reforms which economists advocate include making the operations of the customs and tax bureaucracy as well as the Enforcement Directorate less arbitrary and less vindictive, raising public spending on health and...
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