Recent IMF and World Bank forecasts show that India’s economy could take over from China as the world’s fastest growing economy in the next two years.
The two organisations’ tick of approval for the Modi government’s development agenda comes just over a year after Narendra Modi lead the Bharatiya Janata Party (BJP) to a landslide win in the 2014 Indian elections, securing 282 seats and gaining majority control of the lower house – something that no other single party has done since 1984.
The election result was unthinkable a few years ago. Under the previous Congress party government, India had seven years of GDP growth of around 8% or more, and India was seen as the next emerging economic power after China.
But the growth faltered and a series of major corruption scandals destroyed the credibility of the Congress government.
By the time of the 2014 elections, Indians, who had become accustomed to economic growth and its flow-on benefits, seemed desperate for change and the expectations on Narendra Modi are enormous, with both businesses and the electorate hoping that he can replicate his successes as chief minister of the state of Gujarat.
But despite the economic growth, Modi faces a number of challenges to deliver on his promise of good times ahead for India. Inadequate infrastructure, massive skill shortages and high levels of illiteracy will all hinder efforts to generate the millions of jobs needed to cater for the influx of young people entering the workforce.
The Conversation spoke with Anthony D'Costa about the economic challenges facing the Modi government and India.
Additional news audio: BBC News, ABC Lateline, Bloomberg TV, CNBC, Al Jazeera, Press TV, and ABC News 24.