Understanding Modinomics - A talk by Harsh Gupta
836From a time when the Indian per capita income was higher than the British per capita income to the dubious distinction of being an extremely poor country down the millennium, the Indian economy has suffered a longstanding decline and is only now beginning its climb back upwards.
While the broad reasons impacting India’s present economic growth include exogenous factors such as the demographic dividend and global technological benefits, the key factor is the thrust by Modi government on good-governance.
As India now enters the functioning-government stage with a more rule-based economy being put in place, the tough economic decisions and market reforms undertaken by the Modi government pave the way for India’s resurgence as an economic superpower.
In his Srijan Talk on “Understanding Modinomics,” Harsh Gupta explains why he feels the Indian economy is so bullish under the Modi government.
ABOUT THE SPEAKER
The co-author of the book, A New Idea of India, Harsh Gupta is an India-based public markets investor, a fund manager, and a columnist. He graduated from Dartmouth College with an AB degree in economics and holds an MBA from INSEAD. He has also studied at IIT Delhi and Northwestern University.
He is on Twitter @HarshMadhusudan.
TOPICS COVERED
0:00 2018-Acknowledging the deaths of Atal Bihari Vajpai and V.S. Naipaul
1:17 Introduction of the speaker, Harsh Gupta
4:41 Introduction to Modinomics
5:27 Decline in India’s per capita income declined over centuries.
7:37 comparative analysis of ‘bimaru’ states with others
9:35 The reason to be bullish – demographics, technology, & good policies/governance
11:28 India’s population growth vs China, Labor force participation
13:20 Trends in India’s literacy
16:00 solar power can be India’s strength
18:14 How Orthodox Economics/ Free markets work
22:52 Heterodox economic reforms
23:58 American school of economics, American view of Economics
25:50 What Modi govt. has done on the 4 heterodox factors
- Creating internal markets (GST), enhancing inter-state trade, infrastructure
27:04 Tariffs in India and the world
32:30 3rd model- finance
33:40 Universal education
41:20 Conclusion -What Is Modinomics
48:34 Ultimately all economics is in terms of politics, foreign policy, society & culture.
50:00 International politics & economic exchange
53:03 Weakness of Modi govt (up until 2018)-- the education policy
55:44 Agriculture sector in India
57:50 Speaker’s conclusions on the way forward.