Unlocking India's decadal growth

Sustained high growth will need hard reforms

The political outcomes of the 2024 general election are unlikely to affect the near-term macroeconomic outlook. However, the hard policy choices embedded in alternative policy visions and reform agendas might lead to very different economic profiles over the medium to long term.

While the external environment still seems unsettled and volatile, the large G7 economies appear to be moving towards a “soft landing” to varying degrees. Hence, the policy response will become more conducive to growth, gradually lowering interest rates. This bodes well for emerging markets, with a “risk-on” investor sentiment attracting more capital inflows.

In this context, the domestic macroeconomic environment