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POST TIME: 15 August, 2015 00:00 00 AM
India�s economic reform agenda hits roadblocks
AFP

India’s economic reform agenda hits roadblocks

AFP,  NEW DELHI:  Indian Prime Minister Narendra Modi's ambitious reform agenda has stalled with crucial bills stuck in India's parliament, which ended its latest session this week in bitter uproar.
After sweeping to power 15 months ago in a landslide election victory, Modi's right-wing government promised a string of business-friendly reforms to attract foreign investment and revive the economy.
But the opposition has blocked flagship tax and land reforms with rowdy protests in parliament, while a much-touted plan to overhaul archaic labour laws has yet to be unveiled.
A year after Modi's first Independence Day speech, hailed as a political tour de force, analysts say he risks failing to deliver on his promises.
They will be closely watching his second on Saturday for signs that his right-wing government is still committed to pushing through reforms.
"PM Modi promised he would quickly change the economy and get GDP growth back on track," said Satish Misra, a senior fellow at the Observer Research Foundation think tank in New Delhi. "People now have a lot of doubt about that. He promised more than he could deliver," he told the news agency.
The prime minister this week accused the main opposition Congress party of holding back the economy for its weeks-long protest in parliament to demand ruling Bharatiya Janata Party (BJP) leaders resign over graft allegations.
The government is desperate to pass a bill paving the way for a landmark national sales tax to replace a myriad of complex state and national levies and boost the economy.
But it failed to secure enough backing and now faces a huge struggle to meet a deadline of next April, the start of the financial year.
Companies say simplifying India's unwieldy tax system would make it easier to do business in a country clogged with red tape, boosting production and growth.
Finance Minister Arun Jaitley accused Congress of ignoring the national interest over the goods and services tax, before parliamentary debate descended into personal insults.
Analyst Misra blamed Modi and his senior ministers for failing to adequately negotiate with the opposition to resolve the impasse in parliament -- where the BJP lacks a majority in the upper house. "The (opposition) tactics we are seeing in the parliament are not new. We have seen them for the past 20 years," he said. "It's the government's responsibility to unblock these logjams but nothing is moving."