A provisional scorecard for recent Modi govt measures

Arvind Subramanian, senior fellow, Peterson Institute for International Economics, analyses the government's track record for the past five weeks

The government of Prime Minister Narendra Modi took power in mid-May with high expectations that it would strengthen India's fragile macroeconomy and faltering investment and growth. An assessment this early is a little unfair. Additional major policy announcements will be made in the Budget on Thursday. But to its credit, the government has not been idle or inactive. What and how much has it done?

The respected journalist, Swaminathan Aiyar, offered his assessment recently. The table presents my economic scorecard, describing the measures taken and/or planned for the near future, assessing these (on a scale, ranging from A to D), with commentary that includes explanation, exoneration, or excoriation.

The list is somewhat arbitrary, containing acts of commission and omission. Unavoidably, the assessment and commentary reflect my conscious (and unconscious) slant. But these pitfalls are hopefully outweighed by its benefits.

On balance, the government has made a good start with many, not all, positive steps taken (grades of A- or higher). Any assessment should take into account difficult circumstances, especially a disappointing monsoon that threatens to reduce agricultural output and fuel already high inflation.
An earlier version of this scorecard was posted on the Peterson Institute site (http://blogs.piie.com/realtime/?p=4365).