Can Narendra Modi create Thatcher moments in India?

Can Narendra Modi create Thatcher moments in India?

No one can deny the importance of Margaret Thatcher in changing the economic scenario of Britain. She was the Prime Minister of Britain from 1979-1990. Now India’s new Prime Minister Narendra Modi is compared to Margaret Thatcher and Ronald Reagan. There is no doubt that the Indians are expecting a miracle from Narendra Modi. Can Narendra Modi pass the expectations of people? Can he create Thatcher moments in India?

Yes

• Narendra Modi is assertive, nationalist, authoritarian and dynamic individual. He has the charisma to bring the economic turnaround in the country.

• Gujarat is one of the fastest growing business states that stands firm on economic fronts. Gujarat model speaks a lot about Narendra Modi.

• Narendra Modi and Margaret Thatcher both arise to the political world from grass root levels and are well aware with the problems that a common man faces in real life. Thatcher is a lower middle class grocer’s daughter.

• Thatcher inherited almost a finished economy in Britain and even Narendra Modi has inherited the economy that is facing the problems of slow growth, higher CAD and high inflationary pressures.

• Thatcher stood firm on her grounds and brought the change. Modi is no different as he invited Nawaz Sharif on swearing-in ceremony. He will focus on reduced state involvement and will work on centre-state relationship.

No

• Expecting Thatcher moments from Modi is unrealistic as India is more of a socialist country.

• Thatcher brought a change in Britain which has a very different structure from India. It is not complex or diverse as India.

• Thatcher built the constituency for reform on various parameters like privatization, deregulation etc which is not visible in the Modi’s case.

• One of the biggest differences in Modi’s case and Thatcher case is of expectations from country’s residents. There was a great deal of skepticism when Thatcher became Prime Minster. However, expectations are quite high from Modi.

• Institutional Constraints will affect all the plans of Modi. As of now, for at least one year, the opposition party Congress will still have a strong hold in the upper house of the Parliament.

Conclusion

Narendra Modi is the man selected by the people of India with a hope that he has the potential to deal with the problems of low growth, high inflation and joblessness. Luckily, he sworn for the post at the right time when there are signs of inflation under control and economic growth is likely to see a positive turnaround. As of now, Modi will focus more on manufacturing and infrastructure that in no way resembles a Thatcherite work model.