The Political Economy vertical at Pahle India Foundation (PIF) aims to examine and unpack the complex relationship between economic policymaking and the political institutions, ideologies, and electoral incentives that shape it in the Indian context. This vertical aims to explore the dynamic interplay between political processes and economic policy, with a focus on producing actionable insights that can inform decision-making at the highest levels of leadership. Recognising that public policy does not operate in a vacuum, it examines how political incentives, governance structures, and institutional alignments shape and are shaped by economic outcomes.

In this vertical, we aim to integrate research, dialogue, and strategic insight to help stakeholders across government, the private sector, and civil society navigate the political logic that often shapes economic decisions. Through this approach, we seek to build meaningful partnerships with diverse individuals and organizations, amplifying ideas. This vertical will critically engage with the political, social, and economic dimensions of policymaking, promote evidence-based discourse, and contribute to the creation of inclusive and sustainable economic outcomes.

Genesis

India matters. One of the world’s fastest-growing large economies, even amid geo-economic and geopolitical challenges; a thriving consumer base, a dynamic private sector, and a pivotal role in the global green transition—yet unlocking the next phase of growth demands a governance and economic architecture that enables reform, builds market confidence, and drives long-term transformation. With the country’s demographic dividend offering only a brief period for action, streamlining systems, embracing technology, and advancing climate initiatives are essential to sustaining economic momentum.

Impetus

Acknowledging that economic growth and structural reforms are not purely technocratic exercises but deeply embedded in political realities, there is a need to examine issues at the intersection of politics, governance, institutional frameworks, and economic decision-making. For India, understanding this intersection is crucial. As one of the world’s fastest-growing economies, India has an opportunity to leverage its demographic dividend, technological advancements, and geopolitical positioning. However, realising this potential requires not only economic policy reforms but also navigating the political, social, and institutional complexities that shape them. PIF has built a strong track record in policy research, engaging with senior government leadership, domain experts, and industry stakeholders to drive meaningful change. However, the missing piece in India’s policy discourse is a structured, data-driven approach to political economy—one that recognises the political and institutional constraints and trade-offs shaping economic reforms.

While macroeconomic trends indicate optimism, India’s full economic potential remains constrained by:

  •  Institutional bottlenecks – complex regulatory environments, bureaucratic inertia, and policy uncertainty
  • Under-leveraged private sector – need for reforms that unlock investment and innovation
  • Global integration challenges – ensuring India maximises its participation in global value chains
  • Demographic shifts – managing regional disparities and an aging workforce shortly
  • Technology-climate nexus – balancing growth with sustainable transitions through carving out an Indian way.

Vision

To catalyze effective governance by building bridges between government, citizens, and the private sector, and strengthening institutional capacity.