Three initiatives Modi government and finance minister Arun Jaitley have taken that can cement a lasting legacy on Indian economic policy
India had flirted with an incipient economic crisis a few months before Narendra Modi was swept to power two years ago. Its weak public finances made it one of the most fragile economies in the world. The fiscal deficit was too large for comfort. The current account deficit was at a record high. Inflation was in double digits. All this was a result of the fiscal irresponsibility of the second Manmohan Singh government, combined with the delay by the Reserve Bank of India (RBI) in increasing interest rates to combat inflation.