New Delhi: The return of a coalition government in India has reignited debates over economic policy, especially regarding the aggressive redistributive policies desired by voters, writes Chetan Ahya, the chief Asia economist for Morgan Stanley, in an opinion piece for Nikkei Asia headlined ‘India’s path to prosperity is through growth, not redistribution’.
Despite calls for redistribution, experts say sustainable economic growth hinges more on policies that tend to stimulate private investments as well as infrastructural development. Post re-election, Prime Minister Narendra Modi’s government has tried to focus on those policies, emphasising their role in fostering a developed India, writes Ahya. He adds that policymakers are now expected to persist with supply-side reforms.
“To generate enough employment opportunities to absorb the rapidly growing labor force, policies will need to create an environment of higher growth of around 8% to 10% with low inflation,” he concludes.
‘Brighter outlook for China and India but tepid global growth,’ a piece published in the Independent, says the International Monetary Fund (IMF) has adjusted its global economic forecasts, highlighting varied growth trajectories across major economies.
The article sheds light on how upgrades were made for India and China, with China expected to grow by 5 percent due to early 2024 export surges amid challenges such as a contracting housing market and an ageing population. India’s growth on the other hand, was forecast to expand by 7 percent due to robust rural consumer spending.
Meanwhile, global inflation, after peaking at 8.7 percent in 2022, is expected to ease gradually, though stubbornly high services inflation poses challenges, says the report. The IMF’s chief economist Pierre-Olivier Gourinchas tells the Independent: “The good news is that as headline shocks receded, inflation came down without a recession.”
When PM Modi meets any male world leader, “a bear hug is almost inevitable”, notes Sanjay Kapoor, in the latest AlJazeera article, ‘
US officials, including the national security adviser and state department spokesperson, criticised Modi’s visit amid the ongoing Russian aggression in Ukraine, warning that India’s warming ties with Russia could strain its relationship with Washington. Ukrainian President Volodymyr Zelenskyy condemned Modi’s gesture, calling Putin “the world’s most bloody criminal” just after a deadly missile attack on Ukraine.
Kapoor writes that Modi’s visit underscores India’s delicate balancing act between historical ties with Russia, a major defence supplier and oil provider, and its growing partnership with the US to counter China’s influence. And this comes at a time when Donald Trump might return to power, possibly leading to the softening of Washington’s stance on Russia.
A Bloomberg report, ‘Tata-Owned Air India’s June Market Share Rises Ahead of Merger’, highlights that in June, Air India’s market share in India reached its highest in three years, climbing to 14.6 percent from 13.7 percent in May, according to India’s aviation regulator.
This increase, the report says, marks its strongest performance since June 2021, driven by efforts to streamline operations and attract more passengers through initiatives like introducing premium economy class and expanding international routes. The airline, owned by Tata Group and in the midst of merging with Vistara, saw a positive response amid its ongoing restructuring and branding revamp.
Meanwhile, Indigo, Air India’s main competitor, maintained a dominant position with a 60.8 percent market share. Indigo itself is launching a premium service to target business travellers in India’s fiercely competitive aviation sector.
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Six killed in Oman attack, experts question Trump’s V-C candidate choice
Six people died while 28 others were injured in a shooting incident near a Shia Muslim mosque in Oman’s capital Muscat. During the incident, the three attackers were killed by security forces in the al-Wadi al-Kabir area Monday night, according to an official statement. To know more, read the BBC report.
Donald Trump’s decision to choose J.D. Vance as his running mate has reignited fears in Europe that he would pursue a transactional “America first” foreign policy. Read the Guardian report for more information.
(Edited by Gitanjali Das)
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