The Indian government has chosen to focus on ideological considerations rather than economic slowdown, American economist Nouriel Roubini said on Thursday. The professor of economics at New York University’s Stern School of Business also warned that there can be a loss of popularity if the economy goes down. Without explicitly referring to anti-Citizenship Amendment Act protests, Roubini said "problems on the street" also make foreign investors worried.
Speaking at an event organised by the CFA institute, he suggested to focus on economic issues at hand. He said the country’s growth, which is all set to fall to a decadal low of 5 per cent, is unlikely to go up this year, but it may "probably stabilise".
India and other emerging markets may take up to two quarters more for a pick-up in economic growth, he said. The possibility of continuing tension between the US and Iran, which is leading to military skirmishes, poses an additional challenge for India as the price of the imported oil will go up, Roubini said. He also noted that the population dividend is not an asset for India if the youth is going to be deprived of education, healthcare and most importantly employment, and added that the country needs to create one million jobs a month.