Modinomics and Its Implications for Korea - India Cooperation

5 Pages Posted: 26 Aug 2016

See all articles by Choong Jae Cho

Choong Jae Cho

Korea Institute for International Economic Policy

Young Chul Song

Korea Institute for International Economic Policy

Jung Mi Lee

Korea Institute for International Economic Policy

Date Written: August 5, 2016

Abstract

The government of India is pushing ahead with a series of economic reform policies, named 'Modinomics' after Prime Minister Narendra Modi, focusing on high growth and a business-friendly environment. Modinomics emphasizes the virtuous circle of investment that promotes employment and consumption, which induces additional investment. India's government has been concentrating on improving the business environment by easing or removing various regulations related to investment, and also by establishing a reliable and efficient leadership. The government of India has especially placed a priority on attracting private and foreign investment to the development of infrastructure and promoting the manufacturing sector, based on key Modinomics policies such as smart cities, the development of the Industrial Corridor, and finally, the Make in India campaign.

It is against such a background that we place great emphasis on the importance of India. Considering the ongoing slowdown of economic growth in China, more active cooperation with India is called for. Also, in order to overtake the gap between Korea and Japan in terms of economic cooperation with India, strategies must urgently be established for expediting such cooperation.

We suggest the development of a 'Korean Industrial City', as a new economic cooperation project with India. It dovetails neatly with key policies of India's government, namely its focus on the promotion of the manufacturing sector, development of infrastructure, and industrial corridors.

Keywords: Modinomics, India

Suggested Citation

Cho, Choong Jae and Song, Young Chul and Lee, Jung Mi, Modinomics and Its Implications for Korea - India Cooperation (August 5, 2016). KIEP Research Paper World Economy Brief- No16-19. Available at SSRN: https://ssrn.com/abstract=2830260

Choong Jae Cho (Contact Author)

Korea Institute for International Economic Policy ( email )

[30147] Building C, Sejong National Research Compl
Seoul, 370
Korea, Republic of (South Korea)

Young Chul Song

Korea Institute for International Economic Policy ( email )

[30147] Building C, Sejong National Research Compl
Seoul, 370
Korea, Republic of (South Korea)

Jung Mi Lee

Korea Institute for International Economic Policy ( email )

[30147] Building C, Sejong National Research Compl
Seoul, 370
Korea, Republic of (South Korea)

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