Ideas for India: A lot on the plate for NDA government

Above everything else, we must understand that over the last few years we have been held hostage to economic ideas that were governed more by rhetoric than by data-based evidence

With the NDA government set to assume office, there is a lot of chatter about the reform agenda. While some of that is purely repetitive, we first need to understand that in last few years we have been held hostage to economic ideas that are governed purely by rhetoric and less by data based evidence. This will also help us identify the immediate priorities of the government. 

First, the idea that high real rate of interest is a strong enabling factor for savings is a misconstrued fallacy in the Indian context and it has done enough harm. It may be note