Nitin Pai participates in Reuters GMF LiveChat on the new Modi govt

Takshashila’s Nitin Pai participates in Reuters GMF LiveChat on India post elections and the challenges for Mr Modi and his new government.

Modi’s job toughest in the world

“The mandate is extremely strong. Fully upturns the “we are in the coalition era” meme that we was conventional wisdom for 20 years. His big challenge will be the expectations that he’s created. There are all types of expectations: economic, political, social, cultural etc. So he will have to act in ways that satisfy/pacify if not deliver to the various types of expectees. If he doesn’t, his term can get affected.”

Good news for India-Japan relations in the geopolitical arena. How much this will translate into good news for India in the domestic area will depend on how we can clear up our act and make it easier for Japanese investors and businesses to operate here. The opportunity is big – Japanese businesses will want to diversity their production and supply chains away from China and East Asia, given the geopolitical risks there. Can we grab it? Will our system allow labour & land reforms fast enough? Modi has the intent, though.”

Read the rest of the chat here.