Economics
India’s Path to Become World’s Fifth-Biggest Economy Won’t Be Easy
- Exports, manufacturing seen weakening as global growth eases
- Policy continuity will be threatened if Modi loses election
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India’s economy grew at a faster pace than most major nations in 2018, and this year, it’s poised to overtake the U.K. to become the world’s fifth-biggest.
But that journey won’t be smooth. The outcome of a general election due by May is a potential pitfall for a nation already battered by emerging market turmoil and a currency rout last year. Also, any attempts by the government to undermine the central bank’s freedom and raid its surplus capital may spook investors and carry damaging consequences for the economy.