Indian Prime Minister Narendra Modi and his Bharatiya Janata Party (BJP) highlighted India’s remarkable economic growth during the recent national elections.
Since assuming office in 2014, the GDP per capita in India has surged from around $5,000 to over $7,500.
India’s GDP expanded by 8.4 percent in the fiscal year ending in March, solidifying its position as the fastest-growing major economy globally.
However, the country is grappling with concerning economic indicators, such as a notable increase in the unemployment rate, which climbed to 8.1 percent in April from 7.4 percent in March.
This data, coupled with high inflation, has been cited as a primary factor behind the BJP’s underperformance in the elections, securing only 240 seats compared to its previous 303 and falling short of the 273 required for a majority government.
While Modi managed to form a government with support from his National Democratic Alliance allies, his reliance on smaller parties marks a shift for a leader accustomed to commanding absolute majorities in his previous terms.
“This presents a unique challenge for Prime Minister Modi,” remarked Vina Nadjibulla, the vice president of research and strategy at the Asia Pacific Foundation of Canada, in an interview with Al Jazeera.
Nadjibulla noted that the financial markets reacted negatively to the election outcome, reflecting concerns that Modi might face obstacles in implementing necessary reforms to address issues like high unemployment.
Despite the robust overall economic growth, a significant portion of India’s workforce remains employed in the less productive agricultural sector – a trend that intensified during Modi’s second term, as per an Oxford Economics report.
Youth unemployment, in particular, remains a pressing issue, with the rate being approximately ten times higher than…
Original from www.aljazeera.com