India: Populism, Personalism and Economic Governance

India has a history of populist politics, with its strongest manifestations at the state level of India’s federal system. Recent national governments have displayed populist tendencies. The current Hindu nationalist government, headed by Prime Minister Narendra Modi, has personalistic characteristics which echo populist projects elsewhere. Personalist rule creates uncertainty for capital, and it has reduced the political influence of business. Populism in regional politics is a matter of concern for business in India, but it has created less uncertainty. Populist regimes at the state level might encroach on economic freedom but they also manage the social disruption that follows from rapid economic growth and can create conditions conducive for private sector investment.