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Unmoved by Stability
The electoral promise of transformational economic change had potentially played a role in the decisive victory of Narendra Modi, particularly in the 2014 general elections. In power, his government actively pursued macroeconomic stability and a business-friendly regulatory framework. However, the investment rate of the economy has actually slid, and has remained mostly at a level that is lower than what it was when the government assumed office in 2014. This outcome is interpreted as the result of the pursuit of macroeconomic stability, in the belief that it is conducive to growth, however it may be achieved.
The author acknowledges the financial support of Ashoka University for this project and the excellent research assistance from Ankita Kurur and S V Kabilan for this article.
The general elections of 2014 took place at a time when there were allegations of “policy paralysis” and corruption against the incumbent United Progressive Alliance (UPA-2) government. Narendra Modi had campaigned on a ticket of providing decisive governance, backed by a reputation of success as the chief minister of Gujarat, a position that he had retained for four times in succession. Under his tenure, Gujarat had been among the fastest growing states in the country, even as the national economy was beginning to flag in its growth momentum. As the chief minister, Modi had received high ratings from the top industrialists of the country, and he was expected to bring particular ability to the centre.
Very likely in reference to both ideology and capacity he had promised “minimum government, maximum governance.” In a campaign that emphasised “development,” there was focus on infrastructure and jobs (Economic Times 2014). “Sabka saath, sabka vikas” was a reference to the inclusivity that was imagined. The promise of an improvement in the lives of the people was contained in the slogan “Achche din aane wale hai.” Altogether, a superior economic performance was high on the campaign promise of Modi.
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