Now Reading: Modi Recalls Fragile Five Past, Hails India’s Economic Rise
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Modi Recalls Fragile Five Past, Hails India’s Economic Rise
Prime Minister Narendra Modi said India had moved from the ‘Fragile Five’ to a major economy over the past 12 years in his Independence Day address from the Red Fort. He said…
The Story in Brief
Prime Minister Narendra Modi said India had moved from the ‘Fragile Five’ to a major economy over the past 12 years in his Independence Day address from the Red Fort. He said India is now the world’s fastest-growing major economy and had overtaken Japan last year to become the fourth-largest economy, according to Times Now. NDTV reported that Modi also cited a fourfold rise in defence production and sevenfold growth in electronic manufacturing.
Morgan Stanley coined ‘Fragile Five’ in 2013 for India, Brazil, Indonesia, South Africa and Turkey, economies seen as vulnerable to foreign capital shifts. India faced high inflation, a large current account deficit, rupee pressure and dependence on overseas funding. The country exited the grouping in 2014 as external balances and foreign exchange reserves improved, with policy measures and Reserve Bank of India action helping stabilise the economy.
The Indian Opinion
The speech offers a useful contrast, but political claims can flatten a more complicated record. Saying one government alone rescued India ignores steps taken before 2014, including the 2013 response to external pressure. Calling India a major economy also does not settle questions about jobs, incomes or household security. The fair test is whether growth stays broad-based and whether India can protect its external position when global interest rates and capital flows turn against it.
Sources (3): timesnownews.com, ndtv.com, livemint.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
