At the India Today Conclave Pop Up – Election Special, acclaimed journalist and author Fareed Zakaria dissected India's unique position in today's global landscape. In a dialogue with Rahul Kanwal, Zakaria analysed the upcoming Indian elections, Prime Minister Modi's enduring popularity, and the delicate dance between economic progress and cultural politics.
Zakaria highlighted Prime Minister Modi's ability to straddle the line between insider and outsider. "Modi's genius, in a way, is that he is trying to present himself as both an insider and an outsider," he observed. While championing the achievements of his administration, Modi consistently emphasises his humble beginnings and distance from the traditional "gilded elite," a tactic that resonates with a global wave of anti-establishment sentiment.
This balancing act extends to Modi's economic policies. On one hand, he has championed the "Aam Aadmi" (common man), appealing to a sense of cultural identity and national pride. On the other, his government has actively courted foreign investment, exemplified by the recent efforts to attract tech giant Apple. "The reason it was so difficult for Apple to come to India," Zakaria pointed out, "was because India has very high tariffs on intermediate goods." To overcome this hurdle, the government has reportedly offered Apple "a bunch of special waivers," illustrating the pragmatic approach underpinning Modi's economic vision.
However, Zakaria cautioned that this approach, while yielding short-term gains, might not be sustainable. He argued that India's long-term economic success hinges on becoming more open to international trade. "The path would be for India to become more open to trade, allow more intermediate goods to come in at lower tariffs, then India can become a hub," he stated, expressing concern that relying on selective waivers for individual companies would not lead to the desired 9% growth necessary to alleviate poverty.