Page 56 - Nuvama | IC Report 2023

• DE-GLOBALISATION • DEREGULATION • DEBT • DEMOGRAPHY • DEMOCRACY

➦ Despite a low per capita income, the quality of democratic
institutions in India is far superior to those in other EMs
➦ Democracies and economic development are friends, not foes;
to be sure, unlike authoritarian regimes, democracies tend
to be noisy and wavering, but the latter have a tendency to
self-reflect and an ability to course-correct, which authoritarian
regimes lack
➦ Indian democracy too has come a long way; at one point, caste
was the key instrument of electoral mobilisation in the country;
today, good governance and economic reforms have become
a political consensus
➦ The big-bang economic reforms that India undertook over the
last ten years – GST, fuel price deregulation, DBT, Digitalisation,
RERA and the Bankruptcy Code, among others – are arduous
even for an authoritarian regime

➦ India now combines the effectiveness and purposefulness of
an authoritarian regime, and the liberty and transparency of a
democratic polity; this could be one of the reasons why global
investors ascribe a premium to India

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