In April, Indians will head to the polls to elect their next government. The new government’s economic program, including its first budget due in July, will be largely defined by the precise coalition that wins the elections. However, India’s incoming government will assume office saddled with thorny economic issues that range from large deficits and high inflation, to sputtering economic growth. Although there is evidence India’s economy may be bottoming out, the global economic environment remains volatile.
Noted economist and Carnegie Nonresident Senior Associate Ila Patnaik presented a detailed post-election economic outlook for India. Patnaik discussed India’s macroeconomic scenarios, prospects for financial sector reform, and the options for rejuvenating India’s collapsed investment cycle. Milan Vaishnav moderated.
Ila Patnaik is a nonresident senior associate in Carnegie’s South Asia Program and a professor at the National Institute of Public Finance and Policy in New Delhi. She writes regular columns in the Indian Express and the Financial Express and recently co-led the research team for India’s Ministry of Finance Financial Sector Legislative Reforms Commission.
Milan Vaishnav is an associate in Carnegie’s South Asia Program. His primary research focus is the political economy of India, examining issues such as corruption and governance, state capacity, distributive politics, and electoral behavior. He also coordinates Carnegie’s India Decides 2014 initiative.