Better Days Are Ahead

The state of the Indian economy for the last three years has been one persistently embroiled in high inflation, high gas prices, a declining currency, crumbling infrastructure, etc. On top of everything, the current Congress Party, which has been the ruling political party for the past decade, has been hammered with a slew of corruption scandals amounting to tens of billions of dollars. It seems that the Indian economy could only continue its down streak, however, a recent by Goldman Sachs has stated that the country will see better days. The report states that the world's largest democracy has room for tremendous growth based on several factors: a young population, a strong sense of savings, economic reforms that will accelerate infrastructure projects, and most importantly a bet on India's possible prime minister, Narendra Modi. Narendra Modi is currently the opposition candidate for the premiership and is often credited for turning his state of Gujarat into the most economically developed state in the country. It seems possible that India may even take over China as the world's fastest economy. Regardless of exact times, the Indian economy will improve and it seems that the deplorable state of affairs is only temporary. 

Setback for US-India Relations

What was defined as a strategic partnership between the world's oldest and largest democracies, US-India ties seems to have suffered a major blow. On December 12th, 2013, Indian Foreign Service officer Devyani Khobragade was arrested by U.S. authorities after dropping off her children to school on charges of committing visa fraud and providing false statements in getting her maid, Sangeeta Richard, entry to the United States. The most pressing point about the charge was about the low salary she was paying her maid, a salary that below US standards. Khobragade and her supporters claim that she was sexually harassed by the American authorities and should have given diplomatic immunity. In a statement submitted by Khoragade to the Indian authorities, she mentioned that she was subjected to strip searches, cavity searches, swabbing, and repeated handcuffing. As news reached India, members of the Indian parliament refused to meet with a visiting US delegation, protesters took to the streets demanding that the government take action, and security barriers outside the American embassy in New Delhi were removed. The prime minister denounced the incident as "deplorable". On January 9th, 2014, Khoragade left by plane for India the same day she was indicted by a federal grand jury on the charges mentioned previously.

The incident exemplifies a breakdown of US-India relations, a relationship that has for the most part been a positive. While both parties are trying to put the incident behind them, it will take some time for relations to normalize. India is set to conduct general elections next month and candidates vying for the prime minister's seat are doing their best to look "tough"and stand their ground against the United States as an attempt to appeal to voters.

Secretary of State John Kerry expressed his regret over the incident. Today, the Indian government announced that they see the United States an as important economic partner and both parties have something to gain from this relationship. 

World's Largest Democracy Set to Vote in May

Three months from now, India is holding its general elections in May with an eligible voting population of over 700 million people, roughly two and a half times the size of the population of the United States. The Indian National Congress, which has ruled for most of the country's 67 years as an independent nation, is posed to suffer a humiliating defeat to the opposition called the Bharatiya Janata Party. The Indian National Congress, most commonly referred to as the Congress Party, has been the ruling party for the last ten years under the premiership of Dr. Manmohan Singh. Singh has been credited as a economic reformer helping bring India out of a severe financial crisis back in 1991 to an economic powerhouse today. However, his leadership during his tenure as prime minister has been sharply criticized not only from the opposition party, but by the majority of Indians. With an array of corruption scandals costings the country billions of dollars, the average Indian has been fed up by the current political system. With elections just three months away, the Congress Party still has not decided whom to name as a candidate.

On the opposition, the Bharatiya Janata Party or BJP named its candidate more than six months ago. Branding his image as a common man, BJP candidate Narendra Modi has been hailed as India's "last hope." He is credited for turning his state of Gujarat into a tremendous economic success. Placing forth his slogan of "Developed India" Modi's pro-business attitude has been praised by businesses leaders both in and out of India. However, controversy still surrounds his role as chief minister in 2002, when one of the deadliest religious riots broke out in which 1,000 people died, mostly Muslim. Modi, a Hindu, was criticized for not doing enough to protect and safeguard the Muslim minorities.

Whatever happens, the international community cannot ignore that the world's largest democracy is set to vote, thus having implications on the rest of the globe.