Its weaknesses existed in victory, too, but were overlooked. Such bipolar behavior seems to apply to assessments of India’s economy as well, with foreign analysts joining Indians in similar swings between over-exuberance and selfflagellation. A few years ago, India could do no wrong. Commentators talked of “Chindia”, elevating India’s performance to that of its northern neighbor. Today, India can do no right.
India does have its problems. Annual GDP growth slowed significantly in the last quarter to 4.4%, inflation is high, and the current-account and budget deficits last year were too large. Every commentator today highlights India’s poor infrastructure, excessive regulation, small manufacturing sector, and a workforce with inadequate education and skills.