PM Modi’s business-friendly reforms stopped halfway; investors avoiding India, says top French economist

Prime Minister Narendra Modi has taken many steps to support Indian entrepreneurs’ dynamism but the reforms suddenly stopped halfway due to a shift in focus to political matters, which is negatively impacting the economy, according to eminent French economist Guy Sorman. Currently, he said both local and foreign investors were frightened and did not want to invest in India. Sorman, who has authored many books, including Economics Does Not Lie: A Defence of the Free Market in a time of Crisis’, further said presently the temptation to turn to protectionism was strong in the country.

Email queries sent to the Prime Minister’s Office (PMO) seeking comments did not elicit any response.

Noting that all economists agree there is a strong link between investment and trust in institutions, Sorman said, “This trust is currently eroded at the national level, which is very sad and could have been avoided.”

The economist also argued that given the importance of the informal sector and the poor quality of the statistics, the GDP measurement in India is totally unreliable.