India’s economy, once hailed as a global bright spot, is down in the dumps.
Growth in the South Asian nation fell during the first six months of 2017 from 7% to 5.7%, its slowest pace in three years, and analysts say the road to recovery is steep.
“We’re on a downward spiral,” said Mohan Guruswamy, head of the Center for Policy Alternatives in Delhi, and a former official at India’s finance ministry.
Prime Minister Narendra Modi swept into power in 2014, promising to take India’s economy to new heights. But many reforms have yet to materialize and some changes that have been enacted are hurting growth.
Modi defended his performance in a speech Wednesday, claiming his government had helped several industries.
“It is true that there has been a reduction in growth, but it is also true that the government is fully committed to reversing this trend,” he said. “Our fundamentals are strong.”