MATTERS THE WORLD NEEDS INDIA TO STEP UPASA GLOBAL POWER. ONE YEAR IN, CAN PRIME MINISTER NARENDRA MODI DELIVER? AN EXCLUSIVE INTERVIEWIndia’s New Vision may be the leader of the ‘world’s most powerful democracy, but not its largest one; that distinction belongs to Indian Prime Minister Narendra Modi, whom Obama wrote about in our recent Time 100 issue. Modi is now completing his first year in office, and the sense of expectation and energy in his country is palpable. When Tmet with him earlier this month at his residence in New Delhi, with Trae Asia editor Zoher Abdoolcarim and South Asia ‘bureau chief Nikhil Kumar, Modi was atthe center of a ‘whirlwind, with an ambitious reform program at home, 16 tripsabroad with China up next, anew al-Qaeda threat against him, and economists challenging whether he would be able todrive India to the 8% GDP growth projected. for the coming fiscal year. We discussed these topics and more over the course of two hours, in the only extended interview he has given as Prime Minister. A recurring phrase, like the chorus to each verse of the conversation, was I firmly believe," and indeed he projects a sense that he plans tomove his country into the forefront of nations by force of willand conviction. He was by turns practiced and passionate as he talked about India relationship after years of often awkward interaction. Forthe U'S.and India are ‘more than just the world’s two biggest democracies. They are diverse, multiethnic and multicultural democracies, and ata moment when many nations are debating how tobalance national identity with ethnic diversity, India continues to provide a bracing example, “Modis ideological roots liein astrain of Flindu nationalism that can make minority Muslimsand Christians uneasy. But he ‘went to great lengths to address that concern. “The diversity of India, of our civilization, is actually a thing of beauty” he said, and noted as well that “India by its very nature isa democracy. Lis not just as per our constitution that we are a democratic country; itis in our DNA.” A devout belief in the power of those values is essential ‘tomove India forward, he argued, and whether Modi can succeed will provide no end of lessons to young democracies that are watching him closely. An bh Gibbs, enrroR What You Said About .. ‘Our widely shared May 11 US. edition ‘cover image of a scene from the heart ‘of Bakimore’s urvest was taken by ‘amateur photographer and Baltimore resident Devin Allen, whose Instagram {eed brought him tothe attention of TIME editors. Since we published it ‘on Aptil 30, the cover nas generated a groundswell of reaction, trending, ‘on Twitter and on Redaits front age; sparking debate on radio and ‘TV programs lke ABC's This Week, [NPR's Hore and Now and PBS's NewsHour; and inspiring Beyoncé, for one, to share it wither 32. milion Instagram followers. A sampling ofthe reaction: “One of the most powerful cover shots Tve ever seen.” —gat_sansosa “Disturbingly accurate.” —eounnnowns “Like adding gasoline to the fire.” —eantos nave, FeTeHER, ne. “It capturesan image of the Baltimore protests that is not only succinct but also accurate... Allen's photos have éapttired ‘HEHEAE of the protests and riots.” AFRICANAMERICAN NEWS SITE THE ROOT “YOU'VE sensationalized a couple of tragedies while ignoring more horrifying ‘Scenari0s.”—paRELL TAPP, GILBERT, ARIZ. “The temptation is to believe that nothing has changed, but something has: Baltimore is blacker and POOTET.” —sELANICOBS, INTHEREWTORKER “Brilliant but terrifying” —eusmananmao,.am “Alot of people say Baltimore has never tecovered from those riots in 1968. What's it going to take to recover this, time?” —ceorce stepanopovous, oN Tals WEEK “Never has the phrase ‘The more things change, the more they stay the same’ been more relevant.” —risnsowiny what it will ake to overcome India's modern history of missed opportunities, ‘what it will take to drive Subscrive to Th Brit for roe and get a economic growth without daily email withthe 12 stories you environmental damage and ‘need to know to start your morning. what distinguishes the US.- For more, vst time.com/emal. 2 ‘Me May 8, 2015THE NEXT GLOBAL maha NARENDRA MODI WANTS TO CHANGE INDIA. Aa eesy Cote) TL UA CEC LdHE LIST OF INDIVIDUALS WHO HAVE sold out New York City’s Madison Square Garden is for the most part a collection of familiar names. Elton John, Billy Joel. jay Z. And, of course, indian Prime Minister Narendra Modi. ‘That's right. Once barred from the US, a triumphant Modi worked the capacity Crowd of mostly Indian Americans in the Manhattan arena last September with vi sions ofa stronger India, its place restored in the top tier of world powers after years of economic disappointment. Months on from winning the biggest majority in three decades in national elections last May, he projected optimism and hope in an hour- long speech that was regularly interrupted bychantsof “Modi! Modi! Modi?” giving his starturn on the New York stage the feel ofa frenetic campaign rally. But at the end of rare two-hour inter- view with Tiosx at his residence in New Delhi in which he calls the U.S. and India “natural allies,” defends the pace of his reform drive and rebuffs criticism of his government’ attitude toward India's reli gious minorities, the public man gets sur- prisingly personal. Asked who it waswho influenced him most on his long journey to power, he pauses, and the seconds tick by. *T was born in a very poor family” he says. “I used to sell tea in a railway coach asa child. My mother used to wash uten- sils and do lowly household work in the houses of others to earn a livelihood.” “Modi’s eyes fillas he recalls his childhood inasmall town in the western Indian state of Gujarat, as far away as possible from Madison Square Garden. “My entirechild: hood wassteeped in poverty."he says, wip- inghiseyes.“Forme, poverty, inaway, was the first inspiration of my life, acommit- ‘ment todo something for the poor.” It’s a commitment, Modi says, that drives him now, as he pursues an agenda that he sums up with oneof hiscampaign slogans: “Sabka saath, sabka vikas or “To gether withall, progress fr all” That mes- sage, along with other hopeful slogans promising the return of the "good days” for India, catapulted Modi from the chief minister's chair in Gujarat to the Indian Prime Minister’ office last May, giving him power over the lives of some 1.25 bil lion people—more than a sixth of the world’s population. No other democratic leader hasa wider sway. ‘Ashe nears his one-year anniversary in 20Indian Prime Minister through the gardens at his ial residence in New Delhioffice on May 26,2015, Modi hasestablished himself asnothing les than a global polit calstar Hereputedly sleepsjust three hours a night, begins his days with yoga and has ‘used his office to promote the Indian disci pline, even naming a minister of yoga. On Twitter, the 64 year-old is the second most followed political leader, after President Barack Obama,and ikesto tweet directly at ‘other world leaders—when he's not cheer- ingindia’scricket team on thesocial-media service. Modi has visited 16 countries in 1x ‘months—a figure that, with an upcoming trip to China, South Korea and Mongolia, will rise to 19 by his first anniversary. On the global stage, “he’s shown himself to be very sure-footed, very energetic.” says Nich- las Burns, a former US. Under Secretary of State now based at Harvard University’s Kennedy School of Government. Yet i's what he promised to do at homme that helped bring him to office last year. Roughly half of indians are under 25 years ‘old, young people who through their eens were sold visions of an India shining, a ong'sleeping economic giant that was f- nally stirring awake justas they were com: {ng of age. Economic reforms in the early 19908 set the country on a path of strong growth, which averaged about 7.5% from 2001 tothe end ofthat decade. Buty therun-up tolast yearselection, the Indian giant was stumbling again. Growth had fallen, before recent revisions to data, to about s%—a dream figure fora developed country but still far too low to generate enough jobs for the over 10 mil lion Indians entering the workforce every year. After a decade in office, then Prime ‘Minister Manmohan Singh was viewed as Tittle more than a puppet, beholden to the ruling Congress Party's president, Sonia Gandhi, and biding time until Gandhi's son Rahul was eady to take the reins.,The dynastic Congress arty seemed spent. “At thetime ofthe election last year, there was asensetthat the outgoing government had run out of energy, un out of imagination and was just going through the motions,” says Robert Hathaway, fellow and former director ofthe Asia Programat the Wilson Centerin Washington. Dark Horse AND THEN CAME MODI, A CONTROVERSIAL provincial leader from the Hindunational ist Bharatiya Janata Party (BJP). A vigorous campaigner, he crisscrossed the country touting his economic record in Gujarat, which had grown faster than most other Indian states, developing a reputation as a business-friendly haven in a stultify- ‘ng swamp of bureaucracy. Modi and his supporters held up what became known as the “Gujarat model” as a template to restart the Indian economic engine. “Al: though you'vehad chief ministers become Prime Ministers, it’s never been quite this way before where they've said, Here isa template, and I want toscale this up,” says Milan Vaishnav, an associate in the South Asia Program at the Carnegie Endowment for International Peace. Gajarat is also the setting of the most controversial episode in Modi’s past. In 2002, after the killingofs9 Hindu pilgrims (ona train, the state erupted in bloody sec: tarian rioting that led to the deaths of at least 1,000 people, most of them from the minority Muslim community. (Though the nation has a Hindu majority, more than 138 million Muslims live in India) While his critics question whether he did enough to stop the violence, Modi has al- ways denied any wrongdoing, and he has never been charged with a crime, None- theless, three years after the riots, he was locked from visiting the US. Modi’s election last May led the US. to quietly drop the visa ban. But at home in India, there was fear about the future for minorities in Modi’s India and the rise of right wing Hindu groupslinked tothe BYP. In December, for example, Niranjan Jyoti, a junior government minister, provoked controversy when she asked voters ata lo calelection campaign rally in thecapitalto decide whether they wanted a government “of those born of [the Hindu god] Ram or those born illegitimately.” She apologized soon after making the statement, and Modi publicly disapproved of theremarks. But jyoti remains in government. On a generally positive visit to India in January, President Obama provided a nudge on the issue when, in his final public appearance in New Delhi, he said, “india will succeed solongasitisnotsplin- teredalong the lines of eligiousfaith—so Jongasit’snot splintered alongany lines— andisunified as one nation.” Speaking to Timer, Modi insists his gov ernment is committed to preserving the rights of his nation’s religious minorities. “Wherever an individual view might have been expressed with regard toa particular minority religion, we have immediately negated that,” he says, “So far as the gov ernment is concerned, there is only one holy book, which is the constitution of India. My government will not tolerate or accept any discrimination based on caste, creed and religion.” ‘Asked what he made of the President's remarksin January, Modisays, The diver- sity of India, of ourcivilization, isactually a thing of beauty, which is something we are extremely proud of” I's here that he reiurns to his campaign slogan and to the theme of economic development that helped him win clection.“My philosophy, thephilosophy of my party and the philos- ophy of my government is what I call ‘Sab- ‘ka saath, sabia vias’... So, the underlying philosophy and the impulse of that par- ticularmottoistotake everybody together and move toward inclusive growth.” Taking the Stage NARENDRA DAMODARDAS MODI WAS BORN (on Sept. 17, 1950, in the small north Gu- jarat town of Vadnagar, making him the first Prime Minister born after ndia's Brit ish colonial masters left in 1947. For most of tshistory since then, India has been governed at the national level by the leaders of the Congress Party, the inheritors of Indias independence move- ‘ment. Modi is different, an outsider with humble roots far removed from New Del hi’s political elite, whose father ran a tea sial to support his family ‘At17, Modi left his family fortwo years to travel across India. On his return, he ‘went to the main Gujarati city of Ahmed- abad, where he joined the Rashtriya Swayamsevak Sangh (RSS), aright wing Hindu nationalist group linked to the BT. The switch to formal party politics came in the late 1980s, when he moved to the BYP, later working for some years at the party's headquarters in the capital. In late 200r the party sent him to Gujarat to take over as chief minister. He remained there until he made the leap to New Delhi. During last year's election, Modi’s mod- est background and vigor on the stump drew a sharp contrast with his chief op. ponent, the Congress Party heir Rahul Gandhi, who was the son, grandson and great grandson of former Congress Prime ‘Ministers. Set against Modi, the younger Gandhi looked unprepared and entitied. “Nothing seemed to be happening in gov. ernment,” Modi says now. “There seemed tobe complete policy paralysis” Modi's campaign focused on what he aINTERVIEW Des Ponies eV en er Sr “WE ARE NATURAL ALLIES’ Onn May 2, dian rie Minster Narendra Moi sat dun fran excuse to hournterew with ‘Time eto Nancy Gils, Asia eto Zor Abeacarim an Soh Asia brea chi Nth Kamar inNew Deli Speaking most n Hind, Modi talked aout everthing rom his ambit fr nda to the global arom terrorism what personally moves i. Trasaed a cndensd highlight: On what he has learned so far about ‘running India: The biggest challenge was that was new tothe federal government structures Different departmentstend to ‘work insilos—each department seems to[be] aagovernmentin itself My effort hasbeen to break these silos down, 0 that]everybody. looks ata problem in acollective manner. sce the federal government notas an assembled entity butasan organic entity On how he sees the U.S: Wearenavuralal lies... t's not] what India can do or the US, ‘what the US. can do for India... The way we should look atitis what Indiaand the US. can together do for the world... stzengthen: ing democratic valuesall over. (On India's sometimes tense relations with (China: For nearly three decades there has been, by and large, peace and tranquility on the Indi China border. Nota single bullet hhas been fired for overaquarter century. Both countries are showing great maturity anda commitment toeconamic cooperation. turning to powerin Afghanistan: The drawdown of US. troopsis of course, an independent decision of the American. government, butin the interest ofa stable government in Afghanistan, it would be {important to hold consultations with the ‘Afghan government to understand theirse- curity needsas the US. troops draw down. On tackling the threat of terrorism: ‘We shouldnotlook at terrorism from the nameplates—which group they belong o, what is their geographical location, who are the victims. These individual groups or ‘names will keep changing. Today youare Tooking at the Taliban orISIS;tomorrow you ight be looking atanother name. ‘We shauld pass the UN‘s Comprehensive Convention on International Terrorism. At leastitwill clearly establish whom you view asa terrorist and whom you don't, Weneed todelink terrorism from religion—10 Isolate terrorists who use thisinterchange of arguments between terrorism and religion, Several countries used tosee terrorism as alawand order situation of individual coun. tries. Weshouldseeitas something that isa fight for human values. (On whether economic reforms have gone far and fast enough: This time|last year, nothing seemed to be happening in the government. There seemed tobeacomplete policy paralysis... There wasno leadership. ‘My governments coming to powershould bbe viewed in the context ofthe developments ofthe 10 years of the last governments. somonths of my government... The whole ‘worldis, once again, excited and enthusias ticabout India and the opportunities that India represents, Whetherit isthe IMF, the ‘World Bank, Moody's or other credit agencies, they reall saying in one voice that India hasa great economic future. (On whether he would like to have the ‘kind of authoritarian power that China's leader has: Indiaisademocracysitisin our DNA. Asfaras the different political parties are concerned, I firmly believe that they have the maturity and wisdom tomake decisions thatare in the best interests of the nation, Soif youwere to ask me whether you need dictatorship to run India, No, you donot. ‘Whether youneed.a powerful person who believes in concentrating power, No, you do not. Ifyou were toasicme to choose between democratic values and wealth, power, pros perity and fame, I will very easily and without any doubt choose democrat values (On India's religious diversity, which some citizens believeis under siege: My phi Josophy, the philosophy of my partyand the philosophy ofmy governments Sabha sath, sabe vitas—"Togther withall, progress for allTakeeverybody ogetherand move toward {inclusive growth. Wherevera(negative| view right have been expressed [about|a minority religion, we have immediately negated that Soferasthe government concerned, theres onlyone holy book, which isthe constitution oftndia. The unityandthe integrity ofthe country are the topmost priorities, Allreli gionsandallcommunitieshavethesame rights, anditis my responsibility toensure theircompleteand total protection. My government will not tolerate or accept any ds crimination based on caste, creedand religion, (On what influences him: (Chokes and tars up Thistouches my deepest corel wasborain avery poor family. [used tosell train railway coach asachild. My mother used wash wien- silsand dolowly household work in thehous csofatherstocarnalivelihood.t haveseen poverty very closely. have livedin poverty. Asachild,my entrechildhood was steepedin poverty. Forme, poverty, inaway, wasthe fist inspiration ofmy ie..deided that | would notlive for myselfbut would live for others. ria May 18, 2015 2Bhad achieved in Gujarat and promised ‘more of the same for India—betier infra- structure and less red tape holding back industry. He had a decent record to run ‘on—on Modi's watch, Gujarat’s economy grew by an average of 10% from 2006 to 2011, though his critics note that Gujarat’s traders have always benefited from its coastal location and other trading states also performed strongly. Like a U.S. gov- emor using success at the state level to make a run for the White House, Modi convinced Indian voters that he could do in New Delhi what he had already done inGujarat. But when he won last year’s election, rno one knew how Modi would act an the ‘world stage.Theanswercame the moment hhe became Prime Minister. For his swear- ingin ceremony, Modi invited leaders from around South Asia—including from Paki- stan, the country’s longtime foe, showing welcome initiative. (Relations between the twohavesince turned cold again) Overthe past year, he's also sought to raise India's profile in its backyard, embarking on a tour of the small island states that sit to its south, including nearby Sri Lanka, In recent years the island country had culti- vated closer connections to China, which offered billions of dollars in loans and last year twice docked a military submarine there, irking India. But in March, Modi became the first Indian Prime Minister to visit Sri Lanka in nearly three decades. “He's agreat and good leader,” says new Sri Lankan President Maithripala Sirisena, who has improved ties with India, For the US, which had been forging loser ties with India following the re- forms of the 19908, a key question was, Would Modi bear a grudge for the visa ban? “There was an expectation that Modi ‘might well reflect a nationalistic, even chauvinistic approach, that might fur- ther complicate US-India relations. says Hathaway. But oncein office, Modishowed pragmatism. “He could well haveengaged ingrudge bearing, butin facthehassimply ‘made a decision to not simply let bygones bebygones but givea priority to buildinga stronger relationship with the US: During his trip to the U.S. in Septem- ber, Modi called in at the White House at the President's invitation, and in January, Obama was in New Delhi, surveying In- dian military hardware at the country’s annual Republic Day parade, a first for an ‘American President. Writing about Modi for Tints list of the 100 most influential people in the world, Obama celebrated “Narendras"rise from his humble origins, saying he’ “determined to help more Ind ans follow in his path” “fthave todescribe theindia US.rela tionship ina single word, Iwill say we are natural allies” Modi tells Trae. He adds, “What should the India-US. relationship be, what Indiacando forthe US. what the ‘US. candoforindia, think thatisarather limited point of view to take. [think the ‘way we should look at itis what India and the US. can together do for the world.” ‘And what can they do together? India hhas never been a major trading partner for the US.—itrepresentsless than 2% of total foreign trade. But an economically strong India, one finally pulling its weight inter nationally, could prove a lucrative market for American companies—and provide a boost fora global economy that desperate ly needs a new engine. For India, the US. could beanimportant source ofnew invest ment, and Modi'selationship with Obama helpstaise thecountry's profile abroad. ‘Anactive Indiacanalso bea useful Us partner in the region—especially in AF ghanistan,acountry with which Indiahas Old ties. Modi notes that India has offered morethan $2 billion to Afghanistan forre- construction and development as the US. pullsout and that India will “do whatever istequired to be done for Afghanistan's de- velopment” Most important, India holds the promise ofbeinga democratic counter- ‘weight toa looming China. "We cooperate with China atthe international stage, but ‘we compete with China when it comes to commerce and trade” says Modi. A suc cessful India would be a potent reminder that democracy can still be a pathway to prosperity Great Expectations ‘THE OUTLOOK FOR THE INDIAN ECONOMY ‘has improved over the past year, though that’s not entirely due to Mod's efforts, in March, Christine Lagarde, the managing ctor of the International Monetary Fund, called the country a “bright spot” on an otherwise “cloudy global horizon.” Inflation has eased, and the dramatic fall in global oil prices has been a major boost fora country that imports around 80% of thecrudeit needs. India also looks goodin comparison with other onetime economic hopes—like Russia, a crude exporter that has been hit by the oiF-price drop and in- ternational sanctions, and Brazil, where growth is slowing and the headlines are dominated by a multibillion-dollar cor- ruption scandal at state-run oil giant Petrobras. Modi’s government has also taken steps to further liberalize Indias economy by, for example, opening up the country's insurance sector by pushing through a long-standing proposal to allow greater foreign investment. The Prime Minister has tried to make the country's notori- ously sluggish bureaucracy more efficient, implementing an online system to track when bureaucrats actually arrive at work. ‘The government has also worked to move ahead with a national goods-and services tax to replace a patchwork of state and lo- callevies that havehindered commerce. “It ishard for me to raise objections to much of anything they've done thus far,” says Vaishnav from the Carnegie Endowment for international Peace, terming the gov ernment “pro-business in orientation’ — unlike its predecessor. But at the same time, questions are growingabout whether the scope of Modis reforms matches his rhetoric. Ruchir Sharma, the head of emerging markets at ‘MorganStanley Investment Management, points, or example, toIndia’s public sector banks, which he saysaresittingon masses of bad debts. Sharma had hoped that Mo- disgovernment, withitsmandateto tackle the economy, might take on the problem by outright privatizing some ofthe banks or at least cutting down the government's stake in these enterprises. But, he says, “nothing really has been done about that.” Modi prefers to focus on what he calls “cooperative competitive federalism,” en- couraging growth through competition between the states. Although Modi was elected withan overwhelming majority in the lower house of India’s Parliament, his party anditsallieslack thestrength in the indirectly elected upper house to pass leg islation without thesupport of opposition parties. The government says part ofits plantoputthe economy ona stronger foot ingis to devolve more power to the states toenactreforms that can boost growth, in- stead of directing such measures from the center. The state of Rajasthan near Delhitis often cited as an example,afterit proposed reformslast year, including relaxinglabor umlaws tomake itself more appealing to busi ness. Modi's government, which needed to approve the state changes, should get credit for allowing Rajasthan to press on with such reforms, says Vaishnav. But it’s one thing, he adds, to say we'll let the states make these changes and another to say that “the Prime Minister is going to use his bully pulpit to actually advocate for these types of changes across states, and particularly in the Bj? states.” Opposition is also growing against a key Modi government reform to simplify India's highly restrictive land acquisition laws by, for example, doing away with the need to get the consent of as many as 80% of landowners for certain development projects—a move that’s been portrayed by Modis criticsas beingagainst the inter sts ofthe rural masses, Unlike in China, where the government shows little regard fortheimpact ofdevelopmenton ordinary citizens, in India investors often complain about the legal obstacles that keep them from getting the land they need. Opposi tion parties ae fighting back by painting Modi as pro-Big Business and ant’-poor— labels that, if they stick, could damage the BjPincritical state-level elections ater this year. Theattacks comeasModi’s seemingly invincible political aura hasalready begun to dim—an upstart anticorruption party swept state level polls in Delhi in Febru- ary despite Modi’s being the face of the BJP campaign. Questioned about the pace of his re form drive, Modi points to the change in the economic mood from the glum ‘months leading up to last year’s election. “You will actually see that internationally the world is, once again, excited and en thusiastic about India and the opportuni- ties that India represents,” he says. He was elected toa five-year term, he says, and he hhasa plan forthe whole period, notjust the first year. “What we have done in the last cone year is precisely as per that plan,” he says. “And in the next four years, we have step by step measures that would unfold aswe goalong” ‘Theworld hasbeen excited about India and its perennially untapped potential in the past, before turning away in disap- ointment when the performance falls short of the hype. As Modi enters his sec cond year in office, hundreds of millions of his fellow Indians are hoping that doesn't happen again. . MODI’S WORLD: A PRIMER “WORLD LEADERS > Moctnas met tna verse group at promrert peateians Sung i st yon foes neg Crna's Sinsing, Rossi's Maint one Germanys Prosidert Obema Boone be tra US, Presgentto attend Frets pute Doy THIS REPUBLIC DAY, WE HOPE TO HAVE. FRIEND OVER INVITED PRESIDE OBAMA TO BE THE AST US PRESIDENT TO GRACE THE OCCASION ‘AS CHIEF GUEST. ‘= @NARENDRAMODI, "nov. 24, 2018 Decorated with Dnstipes tat speted outhis name, it fetenes @NARENDRAMODI. PRESIDENT OBAMA LOOKS FORWARD TO CELEBRATING REPUBLIC DAY IN NEW DELHI WITH YOU, —ewnrrenouse, Nov. 24, 2018 “ATWEETING, i ‘od has become a sodal meds henomonon, boating more than Bion folowors on witer arc ‘AMIS MOTHER babe we blesses er son short after he was ‘clectea a8 nda's 5 ria May 18, 2015