ANALYSIS-India’s economic reforms in limbo as state polls near
By Sugita Katyal
NEW DELHI, Aug 30 (Reuters) – Will India’s government succeed in passing key pro-market bills that have been in limbo for years? Not in the near future, say analysts.
With state elections around the corner, the Congress-led government may have lost a political window to push through crucial economic reforms because of fears of a backlash to sensitive decisions from voters already reeling from high prices.
FACTBOX-What is the status of India’s economic reform proposals?
NEW DELHI, Aug 23 (Reuters) – With India’s main opposition party continuing to object to bills on tax reform and opening up the $150 billion nuclear power market, several reforms proposed by the coalition government may be delayed.
The Congress Party-led coalition government has a slim majority in the lower house of parliament, but not in the upper house. The coalition is also composed of several small and fickle parties who are often suspicious of reforms, making the passage of bills in parliament subject to torturous negotiations.
If not passed, the bills can be taken up in the winter session, around November, but pending state elections from the end of the year could narrow the political window to push any controversial policies.
Here are some of the proposals on the government’s wish list and their status:
NUCLEAR LIABILITY BILL
The bill is crucial for the entry of firms like U.S.-based General Electric and Westinghouse Electric, a subsidiary of Japan’s Toshiba Corp, who are reluctant to step in without clarity on accident compensation.
The main opposition Bhartiya Janta Party (BJP) has reneged on a promise to support the bill, saying it makes it difficult to claim compensation from suppliers in case of a nuclear accident.
india is going through some radical changes, for it to lead the world with china in 10 years time, it’s the right moment to act. It’s scary to think that china and india will rule this world in a few years, but c’est la vie
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