Modi's 'lower political capital' to hit implementation of tough reforms, says UBS
Narendra Modi's «lower political capital» will make it difficult for the new government to implement hard reforms, a Swiss brokerage said on Monday. The potential rate of growth can go up to over 7.5 per cent, if the government is able to implement tougher reforms like those related to land, farming, divestments, Uniform Civil Code and one nation one election, UBS Securities said.
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«The implementation of hard reforms can take the potential rate of growth to 7.5 per cent-plus over the next five years, from the present 6.5-7 per cent,» its chief India Economist Tanvee Gupta Jain told reporters here.
"...tougher reforms will be pushed out as political capital is lower vis-a-vis 2019 and 2014 elections," she said, referring to the ruling BJP's reliance on partners of the National Democratic Alliance (NDA) in its third term of the government led by Prime Minister Narendra Modi.
The government will continue with reforms like continuing with the boost to manufacturing, implement the previously-passed labour laws over the next 12-18 months, focus on skill development and creating blue-collar jobs, she said.
«We think implementation of tougher reforms including land reforms, a big boost to infrastructure spending, divestment, farm bills, Uniform Civil Code, One Nation One Elections, amongst others, will
