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India set for tumultuous year ahead
By agencies
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Monday, 16 January 2006, 20:30 IST
NEW DELHI: Analysts are of the view that India's economic reforms will face increasing opposition from the communist allies of the federal government.
It is said the communists will put brakes on any economic changes being planned or done and any compromises will hurt growth and investment.
Prime Minister Manmohan Singh had a difficult year in 2005 after allies led by communists opposed the governments plans to sell stakes in profitable government funded companies that deprived one source of funds for developmental projects.
The cabinet also got its first shock of this year when allies including congress party members condemned plans to cut food subsidies. The cash strapped government was forced to put the move on hold, waving goodbye to about $1.01 billion in budget savings.
According to the analysts, reforms will face similar protests this year too, with the Communists likely to wield even more influence.