Scale of victory in UP to ensure reforms will accelerate, says Dr Arvind Virmani
The budget already has strategic sales in it as also labour reforms. These will be sharply accelerated going forward, says Virmani.
Does a victory like this give Narendra Modi the muscle to perhaps go for some of the big reforms? Talk about FDI in multibrand retail perhaps over rise in concern that even people within his party or the RSS have made?
One thing one has learnt about the current Prime Minister over the last two-three years is that he has not deflected from objectives. He is not going to fundamentally change his approach to economic policy and institutional reforms.
One thing which is clear is that he does not believe in the so called big bang reforms. However, there are many many things which he can, and I do believe, will accelerate. Let me give you a couple of examples. The budget already has strategic sales in it, they have been talking about it for a year or so. That can and will be sharply accelerated going forward. So the victory does give him the base to move forward hopefully much faster on the things which he has already outlined.
The second is labour reforms. Again, the budget already mentions certain labour reforms, reduction of something like 40 labour laws into four etc.He will not do something completely different but he can certainly accelerate the reforms which are already on his table. So yes, it is good news for economic reforms.
But due to the scale of the victory, my only point is to be cautious against arrogance. I do believe this will help accelerate the programmes which are already laid down in the BJP manifesto and things which the government and the Prime Minister has talked about since he became Prime Minister.