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.