Asia’s Stumbling Giant
India’s economy is slowing sharply, with GDP growth lagging well behind other major Asian economies in the second quarter of this year. How can India achieve – and sustain – the Chinese-style rates of growth that Prime Minister Narendra Modi promised when he came to power?
- Kaushik Basu remains optimistic, arguing that policies to stimulate demand and investment can reverse the downward trend.
- Rakesh Mohan agrees, because India can capitalize as rising wages push manufacturing out of China.
- But Changyong Rhee thinks that demographic trends mean that India, like much of Asia, is at risk of growing old before ever becoming rich.