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Modi Pivots to India Reforms to Shift Focus From Hindu Base

  • Post re-election Modi has asserted a muscular foreign policy
  • Economy is likely to lose steam in the July-September quarter
India's Rupee Drops to Record Low as Crude Oil Prices Advance
Photographer: Dhiraj Singh/Bloomberg
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India’s Prime Minister Narendra Modi is putting the flagging economy back on center stage after announcing the biggest privatization drive in more than a decade and making renewed attempts to ring fence the crisis-ridden shadow banking sector.

The country is in the midst of a deepening slowdown amid waning consumption -- the bedrock of the $2.7 trillion economy. And while Modi has targeted transforming India into a $5 trillion economy by 2025, of late, most of his attention has been focused on asserting a more muscular foreign policy and placating the Hindu majority -- his main voting base -- by scrapping autonomy in India’s lone Muslim-majority state of Jammu and Kashmir.