Where does Modinomics fit amidst various econ schools?

Brilliant post by Prof Mahesh Kulkarni.

He looks at various policies started by the new govt and tries to fit them into the economics schools:

What is Modinomics? Classical, neo-classical, monetarist, supply sider, demand sider, Austrian? An analysis based on different economic theories.

The 2014 verdict was understandably an endorsement of both the Hindu political right and the economic right as much as rejection of rampant crony socialism under the UPA. Expectedly, there was anticipation that Prime Minister Modi would summarily put in place the reform measures to stimulate the mired economic growth. Barring perhaps P.V. Narasimha Rao (circumstance-motivated) and A.B. Vajpayee (in part ideologically driven), no other Indian Prime Minister has been identified with the economic right as much as Modi.

Intriguingly, the bequest of past governments is defined by the scale of State involvement in the economy rather than the measure of State withdrawal. Implied in the verdict of 2014 was an increasing space for supply siders in the policy machinery. However, economic gestures originating from the government in the last 12 months perplex and mystify both friends and critics alike. Incontestably, the direction of reforms is unambiguous, yet the relatively leisurely tempo seems annoying. What is unanswered is this question: Can “Modinomics” be slotted in any particular economic school of thought?

There is a nice table which lists policies against the school of thought. As expected, it is really difficult to sum them as one majors school:

Any attempt to situate Modinomics reveals it to be in differing shades of grey. To paraphrase the late Singapore supremo Lee Kuan Yew, economic policies cannot be a prisoner to theory. Pragmatism aligns economic policy to favourable political outcomes. Past experiences do not assure electorally favourable outcomes in many instances, be it 1996 or 2004. It would therefore be pointless in trying to pigeonhole Modinomics into a single stream of economic thought.

Our table is an attempt to locate the economic policy measures under different ideological schools.

Narendra Modi has started a process of shifting Indian political economic thought towards the right. Nonetheless, there may not be a Thatcher’s Hayek moment in the House of Commons or Nehruvian declaration on socialism in the Avadi session of the Congress in 1955. In a long arduous journey, it would be unfair to expect early outcomes. What is likely, however, is that the journey might culminate perhaps at a near-distant horizon, and an Indian Prime Minister might generate sufficient political consensus to remove “socialist” from the preamble of Indian constitution. That moment would finally disenthrall India from the Nehru-Gandhi brand of crony socialism.

Superb stuff. Much better than all the noisy articles on completion of one year..

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