Speaking at the Morgan Stanley India Conference, Dr. Arun Shourie, a minister of the NDA government of 1998-2004, dwelled on the point
that most of the market’s expectations about policy (i.e. fiscal consolidation, restructuring of PSUs, greater FDI & improved private investment climate) can be met quite easily by the new government. Indeed, he pointed out the poor fiscal balance is an ally of the government in undertaking reform. The key impediments in his view are the low level of energy in the bureaucracy and the lack of consistent policy implementation across the country (and hence need for administrative reform).
