Its been more than seven month since Modi government came into the power with absolute majority. Mr. Modi made specific promises with respect to Indian economy. So let us see so far how much it has been fulfilled. Even before coming into power, the so called “Gujarat model” of economic development has already made it mark. In nutshell Gujarat model means more private investment and less interference by the government. In terms of economic theory one can say that it is more inspired by Classical school of economics than Keynesian school. The model worked in Gujarat. Mr. Modi promised same economic model for rest of India. So far from Modi government has not taken any bold policy decision but if one look closely some important policy decision has already been taken which shows the intent of the government in coming days. The most important of them is “Make in India” campaign (more about Make in India in my coming post) and announcement of GST framework. It seems that slowly and gradually the government is trying to reshape the Indian economy. One must also have to take into account falling crude Oil prices has helped the cause immensely for Mr. Modi.
Let us now wait for the Budget in February. The budget will be the first real test for Mr. Modi. to see how much he walk the talk.
(This is my first post. I am eagerly awaiting your valuable responses)