1. Narendra Modi govt eyes reforms through window when door is shut: Experts

Narendra Modi govt eyes reforms through window when door is shut: Experts

With limited legislative success in the Winter session of Parliament, the government has adopted the ordinance route...

By: | New Delhi | Updated: December 29, 2014 5:15 PM
Narendra Modi, Economic reforms, Modi ordinance

Using the ordinance route, Narendra Modi government shows that it is committed to push through reforms, says economic experts. (Reuters)

With limited legislative success in the Winter session of Parliament, the Narendra Modi government has adopted the ordinance route to push key economic reforms but that still leaves uncertainty on the table, experts from top global banks have said.

While using the ordinance route shows the government’s commitment to pushing through reforms, experts from HSBC and Nomura feel it is only a temporary route to changing laws.

Due to disturbances in Winter session, the Modi government’s reforms agenda hit a roadblock with Insurance Laws (Amendment) Bill, 2008 on raising the cap of foreign investment in insurance from 26 per cent to 49 per cent remaining pending despite being listed for consideration for several days.

The Coal Mines (Special Provisions) Bill, which provides for fresh auction of 204 coal blocks de-allocated by the Supreme Court in September because of a scam, also remained pending in the Upper House even though the Lok Sabha passed it on December 12.

“The ordinance route leaves uncertainty on the table,” HSBC Chief India Economist Pranjul Bhandari said in a research note adding “they may not be perceived as a stable solution by investors wanting secure property rights.”

The dominant theme in India’s winter parliament session saw “reforms through window when the door is shut” largely because the BJP is still in the minority in the upper house and could only resort to “imperfect measures”, Bhandari added.

Experts believe the ordinance route indicates the government’s seriousness on reforms and is likely to put the onus on the opposition, pressuring them to come on board sooner rather than later.

Though there is a lot that can be done in the short-term on the executive front even as the legislature goes slow. But, ultimately it is the legislative action, which is key for ushering in second generation reforms.

“The government will have to find a way to bring the opposition on board, so that critical legislative reforms such as the GST Constitutional Amendment Bill and changes to the Land Acquisition Laws can be passed in the budget session without further delays,” Japanese financial major Nomura’s India Economist Sonal Varma said in a research report.

For some bills (like coal and FDI in insurance), the Government chose the ordinance route, both of which were stuck in the Rajya Sabha (the upper house of parliament) in the recently concluded winter session of parliament.

Over the next several months, many key bills such as GST and possible amendments to the land acquisition law will be debated in the Parliament.

“Given that the deadlock in the upper house will likely persist, officials could fast-track reforms in three ways: outlining broad principles in bills, rather than specifics; incentivizing reforms at the State level, and trying to build consensus on a few, key laws,” HSBC’s Bhandari said in a report.

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  1. Banda Gangaraju
    Dec 29, 2014 at 7:33 pm
    It is the impatient parivar members of BJP and its afffiliates who created trouble for the government. Going by the past record of BJP itself in the last loksabha, no wonder the present opposition is paying in the same coin. The government must outline its priorities, whether it is gharwapasi programmes or economic agenda . The government cannot act like an Ostritch when trouble is created by its followers in other outfits. Whatever be the merits of propoa about injustices done to Hindus during the times of Moghuls, British and other alien rulers, attempts to restore status-quo-ante in religious matters will prove to be government's achielles foot. B.Ganga Raju
    1. G
      Dec 29, 2014 at 5:55 pm
      visit informative news in english :vishwagujarat/en/
      1. B
        Dec 30, 2014 at 1:36 am
        The objectives are for the uplifting the economic status of the majority. This is good for the country. If the Govt need to break the back of the petty opposition wanting to keep the economy stagnant, do it and it also serves a good cause. Have the opposition discuss the business of the country first (priority) in LS and RS, and discuss the petty, unimportant things like religion, caste later if time permits. Govt is doing the right thing. P executive order to implement important laws, or needed changes in laws if the opposition parties are unwilling to discuss them in the Parliament.
        1. S
          Dec 30, 2014 at 12:55 am
          Obama is coming.he will be angry,if there is any delay!!!
          1. S
            Dec 30, 2014 at 12:55 am
            Obama is coming.he will be angry,if there is any delay!!!
            1. S
              sikular rober
              Dec 29, 2014 at 7:17 pm
              all these terror gang in our banana republic are flourishing due to mive affection and loves from their encouragers like osamaji lover dogvijay sink,azam khaans etc...these scamgresis are no less than economic and vote bank terroritss which is provenn when their guy goggoi encourages his boddo frends to strenghten his mulla bangla vote bank and triggerr riotts and take no action against them...this italian mafia maino,amul bebe have just been enjoying this conspiracy of goggoi since they know that more the bangla mullas be insecuree more their vote bank gets stronger...,
              1. T
                t p
                Dec 29, 2014 at 5:54 pm
                Hope!. within few months the corrupt parliamentarians from the RS would be expelled & new one from the NDA would add majority to the govt side. Thanks to the supreme court & the common peoples for rejecting the jaya,maya,Lalu,Yadav Singh fed Mulla.......etc. *** jai hind ***
                1. Vaidyanathan K Iyer
                  Dec 30, 2014 at 4:49 am
                  when the goings get tough, the tough also gets going
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