Govt shackled over reforms, even without left

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New Delhi, July 7: : of their support base.

SAVING GRACE

The saving grace for Singh's government has been impressive economic growth which averaged 8.8 per cent in the past four years but it now finds itself pushed to the corner with rising prices fuelling widespread discontent and posing huge policy challenges.

That growth has attracted global attention and investors have come knocking at India's door, only to be frustrated by the slow pace of reforms and bureaucratic red tape.

Key state elections are due later this year and federal elections next year and the government is keen to be seen tackling soaring prices rather than lose more popular support with controversial reforms.

"I am not sure whether they will push ahead with major policy reforms. They will concentrate on bringing down inflation and they don't have the numbers to push through big reforms," said N.R. Bhanumurthy, economist at Institute of Economic Growth.