India's Modinomics and Korea's New Southern Policy

Abstract

Since Narendra Modi took the prime minister's office in May 2014, India has grown into one of the fastest growing emerging markets with an annual average economic growth rate of over 7%. Under the vision of sustainable economic growth based on structural reforms and open policy, the Modi government focused on lifting restrictions on investment, building governance, expanding infrastructure, and strengthening international economic cooperation to achieve macroeconomic stability and stimulate investment. Thanks to the government's so-called Modinomics, India's economic growth rate has risen above China's, and the country has grown to become the sixth largest economy in the world as of 2017. This paper evaluates the progress of the core development policies of Modinomics - Make in India, reforms in tax (GST), labor and land acquisition, and the flagship urban development programs (Smart Cities) - and draws policy implications for Korea's New Southern Policy towards India.