The economics of India’s election machine

For a couple of years now, India’s Congress-led coalition government has been in a tizzy trying to revive what Prime Minister Manmohan Singh called the animal spirit of the Indian economy. Even as annual growth slipped to below 5%, the lowest in a decade, and the current account deficit rose to alarming levels, causing the rupee to plunge against the dollar, the government pulled rabbit after rabbit out of its hat. It announced it was opening India’s protected retail sector to foreign investment...

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