NEW DELHI — Prime Minister Narendra Modi came to power on a euphoric wave of promises to boost India’s economy, add millions of jobs and bring “good times” to the nation.

Three years later, India’s economic prospects look decidedly grimmer. India’s economic expansion has slowed to its lowest level in three years. Small businesses are shutting down after overhauls of the currency and sales tax system. Modi’s own allies warn of a dire outlook.

While government ministers have urged patience, analysts and others in Modi’s governing Bharatiya Janata Party are not so sanguine about the current trends.

“A hard landing appears inevitable,” Yashwant Sinha, a BJP lawmaker and former finance minister, said in a stinging commentary Wednesday in the Indian Express newspaper. He accused the government of rushing through poorly planned economic reforms, which he said will hobble home-grown businesses for years to come.

Another leading BJP lawmaker, Subramanian Swamy, said India was facing the possibility of a “major depression.”

Last week, the Organization for Economic Cooperation and Development scaled back its economic growth forecast for India to 6.7 percent for the 2018 fiscal year, down from 7.3 percent predicted earlier this year.

In November, the government declared 86 percent of all rupee notes would be replaced with newly designed bills, aimed at cracking down on tax evasion, corruption and counterfeiting. But with most of the new bills not yet printed, ATMs ran dry for weeks.

Many small, cash-reliant businesses including grocery stores and home-based workshops went under.

In July, the government replaced a complex system of cascading federal and state taxes with a single Goods and Services Tax. Small businesses were unable to comply with new, thrice-monthly tax filing requirements.


Only subscribers are eligible to post comments. Please subscribe or login first for digital access. Here’s why.

Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.