His government’s economic missteps don’t appear to have dented Prime Minister Narendra Modi’s personal popularity. Photo: Vipin Kumar/HTYou’d think the Indian economy had returned to rosy health. This is a country that tends toward pretty high inflation—which makes sense, if you look at it from a political economy perspective. Given India’s inefficient state, pumping up agricultural prices is pretty much the only reliable way to transfer resources to millions of subsistence farmers. Meanwhile, even Narendra Modi can’t defy India’s political economy forever.

Source: Mint January 08, 2018 03:11 UTC