Rajeev Gowda writes on Modi government: The 11-year slide

In a recent analysis, Rajeev Gowda critiques the Modi government's economic strategies, particularly focusing on the 11-year trajectory of India's fiscal policies. Gowda highlights the mega corporate tax cut implemented under Modi's administration, which was intended to stimulate private sector investment. However, he argues that this incentive has not achieved its desired effect, as the private sector's enthusiasm to boost investment has remained tepid. Gowda points out that despite the significant reduction in corporate taxes, the private sector's contribution to gross fixed capital formation has not seen a proportional increase. In the fiscal year 2024 (FY24), the anticipated surge in private investments has not materialized, raising concerns about the effectiveness of such fiscal measures. This stagnation suggests a disconnect between policy intentions and actual economic outcomes, prompting further scrutiny of the government's approach to fostering economic growth. The analysis calls for a reassessment of policy frameworks to better align with the needs of the private sector and ensure sustainable economic development. Gowda emphasizes the importance of addressing structural challenges and enhancing investor confidence to drive long-term growth. His critique invites policymakers to reconsider strategies, aiming for a more balanced and inclusive economic trajectory in the years to come.

— Authored by Next24 Live