Unlocking the Editor’s Digest for free, Roula Khalaf, Editor of the FT, shares her favorite stories in a weekly newsletter. The writer, co-author with Rohit Lamba of ‘Breaking the Mold: India’s Untraveled Path to Prosperity,’ and former governor of India’s central bank, discusses the recent democratic victory in India. Despite Prime Minister Narendra Modi’s increasingly authoritarian government failing to secure a majority, the election results seem promising economically and politically for the country.
Before the election, policy decisions were primarily made by the prime minister’s office and bureaucracy, with minimal input from the opposition. Various tactics, such as co-opting the media and business, were used to stifle dissent. However, some institutions acted independently, such as the supreme court, which unfroze the opposition’s bank accounts. The election commission ensured a relatively fair voting process, with little intimidation or fraud. The unexpected election results highlighted the disconnect between the government’s narrative of overall growth and the reality faced by many households.
With a potentially weakened government and a stronger opposition in parliament, there is hope for more collaborative policy-making. Reforms that were previously withdrawn, such as agricultural reforms, may be revisited. Land and labor laws could be targets for reform, aiming to create more inclusive economic growth by focusing on job creation and youth employment. Additionally, the government may need to reconsider its focus on manufacturing exports and explore the potential for expanding high-skilled service exports, such as consulting and telemedicine.
As India transitions towards a more democratic government, there is optimism for a fairer and more impartial mainstream media and bureaucracy. This shift towards democratic decision-making could have significant implications for the future distribution of parliamentary seats, balancing the economic growth of different regions. A more democratic India could also serve as a reliable ally to other democracies worldwide, bridging the gap between different perspectives and experiences.
The recent Indian election serves as a testament to the ability to halt authoritarianism and reinforce the importance of democratic values. As India becomes more central to the global stage, it has the potential to play a crucial role as a bridge-builder in an increasingly fragmented world. The country’s unique history and experiences of colonialism offer a different lens to that of the G7, providing a valuable perspective in international relations. Ultimately, a more democratic India could lead to decisions that benefit all citizens and contribute to a more stable and harmonious global community.
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