As India heads to the polls, Prime Minister Narendra Modi can proudly declare that the world’s largest election is underway in the fastest-growing major economy. With a GDP of $3.5 trillion, India now ranks as the fifth largest economy globally, surpassing its former colonial ruler, Britain. The government is heavily investing in infrastructure projects like roads, railways, ports, energy, and digital infrastructure, enticing multinational companies to consider India as a key element in their “China plus one” strategy.
Despite its impressive GDP growth, India faces significant obstacles such as underemployment and a relatively small labor force compared to its population size. Private sector investment remains lower than pre-2008 global financial crisis levels, and income per person is only a fraction of China’s. Mr. Modi’s economic record is a mix of successes and failures, prompting further scrutiny.
Six books are recommended to understand India’s complex economic journey and assess Mr. Modi’s economic policies. These books provide valuable insights into India’s challenges and possible pathways for sustainable economic growth:
1) “India After Gandhi” by Ramachandra Guha provides a comprehensive overview of India’s political history since independence from British rule and how it has shaped the country’s economy today.
2) “The Elephant in the Room: A Journey Through Modern Indian Politics” by Rana Ayyub explores the role of religion and caste politics in shaping India’s economy and society.
3) “The Great Indian Developmental State: A History of Economic Policy Making in Nehruvian India” by Vikram Chibber examines the role of government intervention in driving economic development during Jawaharlal Nehru’s tenure as prime minister.
4) “From Plenty to Scarcity: Malthusian Economics in Early Nineteenth Century England” by David Ricardo traces the evolution of classical economics from Thomas Malthus to Adam Smith and how it influenced modern economic thought.
5) “Capitalism with Chinese Characteristics: The New Development Model” by Deng Xiaoping provides insight into China’s unique approach to capitalist development and how it has transformed the global economy over the past few decades.
6) “The Political Economy of Globalization” by Robert Cable examines how globalization has impacted economies around the world and what lessons can be learned from different experiences with open markets and trade liberalization
