Implementation: UPA's Big Reforms Challenged

Bangalore: The government seemed determined to revive the India growth story when it announced a string of reforms. The Sensex rallied on the back of the government’s strong reiteration of commitment to greater FDI in retail and insurance sectors. But the ever changing landscape of coalition politics remains the stumbling block to economic reforms.

The reduction of subsidies on fuel was seen as a bold move aiding the correction of an enormous fiscal deficit. The reform measures announced greater participation of FDI in Indian retail, aviation and insurance sectors and were welcomed by global economies. The reforms promised greater investment in an economy facing the heat of slowdown.

The UPA government’s decision to open up the retail market to FDI was seen as especially controversial and has since been hotly debated in the Parliament. The pressures of coalition politics are weighing down heavily on the government. The coalition partners in a bid to preserve their respective vote banks have been crying foul and threatening to withdraw support. While Mamta Banerjee made her exit, the Manmohan Singh government has been left on tenterhooks by SP and BSP.Their support shall determine whether the government stays in power and also subsequently whether it is able to implement the announced reforms. Dogged by scams, the UPA is a sitting duck for the scathing attacks of the opposition. This political turmoil has already resulted in many a disrupted parliamentary sessions with no productive results.