Modi’s anti-corruption efforts – in combination with heightened scrutiny from public auditors, judges and the media – began to put a stop to the worst of that cronyism. But while the old corrupt system stopped working, no new and more honest system replaced it. The result was paralysing inaction in New Delhi, as bureaucrats declined to make decisions for fear of being accused of malfeasance, and businesses stopped investing in new projects. Industrial investment plunged.
