PM Narendra Modi, with reforms hanging fire in Parliament, has finally given in and invited Congress chief Sonia Gandhi and former PM Manmohan Singh for tea.
After months of acrimonious exchanges between both sides, PM Narendra Modi, with reforms hanging fire in Parliament, has finally given in and invited Congress chief Sonia Gandhi and former PM Manmohan Singh for tea. Modi today invited the Congress leaders to his Race Course Road residence at 7 PM, sources said. Given the mutual antipathy, here we provide the top 5 reasons why Narendra Modi’s hand was forced into sending the tea invite for this evening:
1. GST Bill, Land Acquisition law and other big bang reforms are pending with Parliament and unlikely to be passed without Congress approval. This assumes significance as the NDA government and the Congress are at loggerheads which is stalling the Indian economy.
2. Narendra Modi wants his economic agenda to be cleared in Parliament during this session or else the entire issue will be indefinitely postponed and that will deal a huge blow to the Indian economy and the Bharatiya Janata Party’s (BJP) reputation of being an effective political entity – it will also dim its chances of winning elections.
3. Various rating agencies like Moody’s and others have already questioned PM Narendra Modi’s ability to deliver on his poll promises and if this actually comes to pass, foreign investors will look for exit doors and new ones will bypass India for other greener pastures, hurting investments in India’s infrastructure and most everywhere else in the economy.
FE said it first: Narendra Modi must talk directly to Sonia Gandhi to pass the GST Bill
4. NDA govt needs Parliament approval for GST Bill in the winter session to roll out the new indirect tax regime as planned from April 1, 2016.
5. The reason Congress had stalled passage of the GST Constitution Amendment Bill in the last session of Parliament was over its demand that a revenue-neutral rate not higher than 18 per cent be mentioned in it. It is also opposed to states being given powers to levy additional 1 per cent tax on supply of goods over and above GST rate.