Chasing stable growth
May 11, 2017
India's economy has been gaining ground and international interest. Foreign investors are getting excited. They helped push the county's main stock index to a record high as the country pushes ahead with plans to create the world's biggest consumer market.
Yuko Fukushima discusses the recent economic developments in India with NEWSROOM TOKYO anchors Sho Beppu and Aki Shibuya.
Beppu: Why is there so much interest in India? Well look, when talking about emerging economies, there are many other choices in Asia as well.
Fukushima: Emerging economies that once had the world so excited aren't in good shape. But India is bucking that trend and posting growth of around 7 percent, which is better than China.
Even so, looking back over the last decade or so, there were some sharp ups and downs for India. That volatility has given some foreign investors second thoughts about doing business in the country. They're also holding back because India's legal system and transportation infrastructure have yet to develop.
India's Finance Minister, Arun Jaitley, is the man steering the economy. He happened to be in Japan earlier this month and I caught up with him to find out what can be done to stabilize growth. I started by asking him how India's economy ranks on the world stage.
Watch the video above for Yuko Fukushima's interview with India's Finance Minister Arun Jaitley.
Fukushima: Analysts I talked to say India is moving in the right direction under Modi's reform program. But they say the biggest obstacle to the country's growth is the huge amount of bad loans held by banks.
That's a problem because banks have tightened up on lending money for infrastructure, which the country badly needs to boost its economy. The Finance Minister acknowledges this challenge, so we wait to see how it affects his reform program.