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Strategies & Market Trends : New India

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From: Glenn Petersen5/16/2014 9:16:59 PM
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With Narendra Modi, a Change in India

By THE EDITORIAL BOARD
New York Times
MAY 16, 2014

Narendra Modi, India’s presumed next prime minister, and his opposition Bharatiya Janata Party made history by delivering a crushing defeat to the ruling Indian National Congress party, which has controlled Indian politics for most of the past 60 years. Winning more than 272 parliamentary seats, the B.J.P. received the strongest mandate of any party in 30 years.

Mr. Modi, the Hindu nationalist and former tea seller, ran on his expansive promises to revive India’s moribund economy, end corruption, create millions of jobs and lift millions of people out of poverty. The landslide victory reflects a changing country more willing to extend governance to those outside the established elite.

The loss was so humiliating for the Indian National Congress party, which has governed for most of India’s independence, that it was unclear if it could rebuild its prominence. The Gandhi family, which dominates the party, should hand over the leadership to others. That is the only chance for India to have a credible opposition.

The victory gives Mr. Modi, who has been chief minister of the state of Gujarat for 13 years, the chance to revitalize the economy and shape the way India engages with the world. How he moves forward will matter to Indians clamoring for jobs and development, but also to others, including the United States, which sees India as a vital economic and security partner in Asia.

One of the most important questions is whether Mr. Modi will be the pragmatic pro-business leader who has argued for putting a priority on economic reforms and creating jobs, or whether he will be the strident Hindu nationalist who might impose a sectarian agenda on a largely secular state. Many Indian Muslims blame him for failing to stop bloody riots in his home state in 2002, leaving more than 1,000 people dead, most of them Muslims. Others fear he will try to quash dissent and centralize authority.

American officials were so concerned about the Gujarat killings that they refused to give Mr. Modi a visa for nearly a decade. The administration now is prepared to engage with a Modi government, particularly on economic issues, one official said, and President Obama moved quickly on Friday to invite Mr. Modi to the White House.

The two countries will have to work hard to overcome the strain built up between them in recent years. During the Bush administration, a misguided United States-India civilian nuclear deal promised much and delivered little as the Indian government failed to open its economy up to greater trade and foreign investment. Mr. Modi needs to deliver on his vow to make progress, and he and Washington must confront differences on global trade issues.

On security, the two countries should pursue deeper cooperation beyond occasional military exercises and arms sales, like calming tensions between China and Vietnam over regional waterways, building peace between India and Pakistan and stabilizing Afghanistan.

Mr. Modi has set very high expectations for economic revival and his government, but he can’t achieve those goals if he exacerbates sectarian divisions, for example, by using divisive rhetoric against Muslims. He set a good tone on Friday by promising to work for the good of all Indians, and he will need to stick to that commitment.

nytimes.com
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