Indian Government Has Lost Some Credibility: Prasad

The transcript discusses India's economic challenges and prospects amid the pandemic. Initially, India was expected to recover its GDP to pre-pandemic levels by 2021, but recent developments have affected business and consumer confidence. The economy is driven by household consumption, with some investment recovery. However, India lacks the fiscal flexibility of advanced economies. Structural reforms by the Modi government are crucial for long-term growth, but political challenges and the pandemic's impact on international relations pose hurdles. Despite setbacks, India remains a promising market with potential for recovery.

What was India's economic outlook before the latest wave of the pandemic?

• India was expected to be one of the top economies to recover.

• India was expected to surpass the US in GDP growth.

• India was expected to have a stable but slow growth.

• India was expected to face a prolonged recession.

What has been a major driver of India's growth?

• Household consumption

• Private investment

• Export growth

• Government spending

What challenge does India face compared to advanced economies like the US?

• High inflation rates

• Political instability

• Inability to implement extensive monetary and fiscal policies

• Lack of natural resources

What reforms has the Modi government undertaken to boost long-term growth?

• Labor and foreign investment reforms

• Healthcare reforms

• Education reforms

• Tax reforms

What is a key concern for maintaining investor confidence in India?

• Political instability

• High interest rates

• Government's ability to implement effective policies

• Lack of infrastructure

What political challenge is the Modi government facing in implementing reforms?

• Opposition from international organizations

• Declining public interest in reforms

• Resistance from farmers and other groups

• Lack of support from the business community

How has the pandemic affected India's foreign relations?

• Strengthened its position against China

• Had no significant impact

• Weakened its position, making it reliant on foreign aid

• Improved its trade relations with Europe