It’s the economy, stupid. Modi’s India reelection is good news

It’s the economy, stupid. Modi’s India reelection is good news


Indian Prime Minister Narendra Modi claimed a third term in office on Tuesday. Still, voters delivered a cautionary message as Modi’s margin of victory was much narrower than expected. Modi and his Bharatiya Janata Party colleagues will now refocus on economic growth in the world’s most populous democracy.

A big question follows: Is India replacing China as the world’s most rapidly growing large economy?

The short answer is yes and no. India is now growing faster than China, and under Modi’s policies, India will continue to rush toward middle-income status. In contrast, China’s economic dynamism is being sapped by demographics, real estate bubbles, misallocation of capital toward state-owned enterprises, and the suffocating effects of an authoritarian police state. Time matters, however.

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For one, India’s economy remains

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