8 Jan 2015

Reforms unfolding slowly

The new government has embarked on its programme facing the prospect of a sullen opposition prepared to defy the NDA’s impressive majority in the lower house of parliament by using its continuing dominance of the upper house to obstruct key legislative action. Strategically, the NDA can selectively use executive ordinances to push landmark reforms and, in extremis, can resort to joint sessions of the two houses, in which it does command a majority, to force key legislation through. So far, however, promised reforms and manifesto pledges have been unfolding slowly and investor frustration with the pace of progress has been reflected in a net withdrawal of some foreign liquidity so far in December.

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