The 2012 assembly election results make one look back at the aftermath of 2009 Loksabha elections. There was widespread euphoria among people who were frustrated with policy gridlock under UPA-1. The stock market surged 17% in response to UPA's reelection. That was then.
A little less than 3 years into it's second stint and with the latest election setbacks, any hope of robust policy reform is lost. Emboldened allies and opposition parties are bound to make life very hard for the government. Some are already hankering for mid-term elections.
A little less than 3 years into it's second stint and with the latest election setbacks, any hope of robust policy reform is lost. Emboldened allies and opposition parties are bound to make life very hard for the government. Some are already hankering for mid-term elections.
Unless policymakers are willing to take politically difficult decisions, reforms will stay in the backburner for the foreseeable future. States that care for higher growth will have to enact ad-hoc measures , the kind of policy "jugaad" that would impose inefficiencies and onerous costs on businesses. Sadly, there are no better prospects in the horizon.
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