Modi austerity push criticised as India faces economic strain

Prime Minister Narendra Modi's May 10 call for austerity, including reducing fuel use, avoiding travel, shifting to work-from-home, natural farming, and refraining from gold purchases, has sparked sharp criticism. Frontline reports the measures come as the rupee slides and India's balance of payments is strained by commodity imports and the US-Iran conflict. The magazine argues the government blames external factors while ignoring its own policies, such as limiting Russian oil purchases and cutting subsidies, and says the push will hurt the poor.

Dalal Street Investment Journal, however, frames India's current challenges as part of a long-term transition rather than a crisis. It acknowledges structural anxieties like low manufacturing value addition and R&D, but points to progress in electronics production, defence exports, and IT services moving up the value chain. The article argues past vulnerabilities have been addressed through reforms and that the economy is adapting, though it warns the execution test for manufacturing remains progressive localisation.