Straight from the Specialists
(Any opinions expressed here are those of the author and not of Thomson Reuters)
At his second cabinet meeting, Prime Minister Narendra Modi unveiled a 10-point programme that set out a comprehensive agenda for his ministers. The agenda is a good cocktail of short-term needs and long-term objectives.
The underlying message, however, is of good governance. That is what Modi has been harping on during his election campaign and which he sincerely believes is the secret of his success in Gujarat.
There are many issues the UPA government had left hanging in its second term. It could not get a hold on food inflation that, for the most part in the last three years, remained above 10 percent and forced the Reserve Bank of India to raise the repo rate to 8 percent.
Equally important, the investment cycle has to be resumed in spite of the damage done by the land acquisition legislation. The more imminent danger is of monsoon failure and, consequently, of a shortfall in rice production in south India. These are critical issues and would have to be addressed.