IDEAS home Printed from https://ideas.repec.org/a/bin/bpeajo/v54y2023i2023-01p185-215.html
   My bibliography  Save this article

India at 75: Replete with Contradictions, Brimming with Opportunities, Saddled with Challenges

Author

Listed:
  • Viral V. Acharya

    (NYU Stern School of Business)

Abstract

I present a perspective on where the Indian economy stands right now. I acknowledge the contradictions that have arisen given the divergent growth path of urban, formal or (stock-market) listed India relative to rural, informal or unlisted India. I also focus on the country's immense opportunities in expanding the digital footprint of finance to last-mile borrowers. I present novel facts on the rising industrial concentration, drawing out its historical evolution, the channels that have caused it to rise recently, and its implications for product price markups and inflation. I recommend that to restore industrial balance, India increase overall competition by reducing import tariffs and reduce the pricing power of its largest conglomerates. I also propose that to restore macroeconomic balance, India reduce fiscal deficit and public sector borrowing requirements as well as rein in inflation, address gaps in skills and education, and restore female labor force participation.

Suggested Citation

  • Viral V. Acharya, 2023. "India at 75: Replete with Contradictions, Brimming with Opportunities, Saddled with Challenges," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 54(1 (Spring), pages 185-215.
    • Handle: RePEc:bin:bpeajo:v:54:y:2023:i:2023-01:p:185-215
    as

    Download full text from publisher

    File URL: https://www.brookings.edu/bpea-articles/emerging-market-challenges/
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Emerging markets; India;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bin:bpeajo:v:54:y:2023:i:2023-01:p:185-215. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Haowen Chen (email available below). General contact details of provider: https://edirc.repec.org/data/esbrous.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.