23 mayo, 2014
INDIA seems to formally gain on optimistic politicians, but no one nearly as Hindu & nationalistic as Narendra Modi.
The recently elected 14th prime minister (see Picture 1) is going to swear him in on May 26th. Being a member of the Bharatiya Janata Party (BJP) or also called Indian People’s Party, he’s trying to bring a ‘fresh wind’ into India’s political & economical system.
According to ‘The Economist’, it is necessary to mention that India is the world’s third largest economy. However, its regional position is not an easy task, as the government is also likely even to deal with iron-ore mafias and there may be some kind of conflicts with its neighbors in Pakistan due to religion.
Anyway, what is clear is that Mr. Modi wants to ‘repair’ India – eradicating hunger, cleaning the famous Ganges River and creating jobs. To do so, the contribution to GDP from the industry will be necessary, and to some extent – and not to pretend – loans to zombie firms too. A deep financial reform has to get started, but… Are banks fit enough for that?
In the first year of Mr. Modi’s term, he needs to stabilize banks and to manage inflation, in order to help India’s economy to boom again. Mr. Mobi ensures in his speech an effective government, providing for example clean & drinkable water and a powerful and flourishing industry. Reforms that can be crucial for India’s future.
The new prime minister strives to achieve an effective and decisive government in order to confront all upcoming challenges, which before have been quite unable to overcome.
The parliament itself has fewer Muslim delegates than ever since 1952.Despite the Islam being the second largest religion in India, and it being the 3rd largest country in number of Muslims (13.4% of the population), after Indonesia and Pakistan, only 7 of the 482 candidates were Muslims and none of them won.
The BJP, or also referred to Hindutva, appealed to his Hindus voters to be proud of their heritage and their country, but trying to avoid the anti-Muslim language. Unlike other parties, Mr. Modi didn’t do any special actions for religious minorities. Supported by the Supreme Court, the BJP tells that the Hinduism has, since its inception, instilling principles of tolerance and compassion plurality – unlike the Muslims, who only appealed to believers in order to get votes. Many Muslims can identify a clash of inclusive tradition and the authoritarian nature of Mr. Mobi.
As for India’s foreign policy, it starts seeing ‘fresh winds of change and openness’, inviting some leaders of South Asia, including the prime minister of Pakistan, Nawaz Sharif, to his swearing-in on May 26th. Although Mr. Modi lacks of experience abroad, just as Gujarat’s Chief Minister, he tries to work intensively with foreign companies, in order to seek more trade and investments.
Apart of this, further actions are essential to improve India’s economy. For example, taxes seem to be very speculative, so foreign companies prefer to export their products to other countries. In this sense, India’s government has to improve its tax net.
Closing, we can also identify two important aspects that have to get improved or even completely changed. The first one is India’s reputation – in order to enhance businesses.
The second aspect is that India seems to go only in two directions: It might observe itself without doing anything, or it may create a valuable private sector to promote more jobs.
What will be the government’s final decision?