Prospects for India in 2020
Prime Minister Narendra Modi must contend with political headwinds as well as an economic slowdown
Recent setbacks in state elections suggest Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) is not yet the dominant party that it aspires to be. Meanwhile, economic growth is slowing.
Our judgement
Modi’s government will step up attempts to draw foreign investment, believing this can help bolster growth in the long term, but falling consumer demand will make it difficult to reverse the slowdown in the short term. The BJP will rely on careful management of its electoral alliance to help it weather any political fallout, while Modi will try to cement trading and diplomatic ties with overseas partners.