Time for India to Realize Its Potential

The Indian voter has spoken, and he has pitchforked the national parties often buffeted by extreme demands from regional outfits and alleged to be in terminal decline on to the political centre stage. The Congress, in particular, is enjoying a renaissance as the UPA led by it has won a decisive mandate to rule. The voters' verdict has belied fears of rampant identity politics and a fractured mandate. It's now possible to hope for the formation of a stable government that can last its tenure and, even more important, be cohesive enough to take critical decisions without being tied down by internal bickering.

That's just as well. New challenges are shaping up that require urgent action. An international economic storm is blowing and it has washed up on Indian shores, bringing down the high growth rates that India enjoyed through most of the UPA government's tenure. Joblessness is rising and consolidated government deficits are projected to soar beyond 10 per cent of GDP. The economy will not recover on its own but will need action by the government on multiple fronts: roads, power, education, reforming land and labour markets, efficient targeting of subsidies, balancing the budget through disinvestment and other measures, initiating more investment-friendly regimes and slashing red tape.