America
US media underlines challenges after Modi's one-year rule
Washington, May 26
Reflecting on the
completion of one year of Prime Minister Narendra Modi's government, the
US media on Monday underlined various challenges facing his government,
saying he "must face the reality that much of his agenda is still only
potential".
"After soaring through India’s political stratosphere
on the economic promise 'achche din aa gaye' or 'better days are
coming', Mr. Modi must face the reality that much of his agenda is still
only potential," the New York Times said while analysing the
achievements of the prime minister's one-year-old government.
While
counting Modi's accomplishments in some sectors like allowing more
foreign investment in railways and defence sectors and helping cut red
tape, The Wall Street Journal said: "On other key fronts, Mr. Modi has
moved less decisively, frustrating investors who hoped for bolder change
after last year’s election."
The NYT pointed out that India is
now seen as a bright spot as soon-to-be "the world’s fastest-growing
large economy," but at home, "job growth remains sluggish".
Listing
the political challenges faced by Modi, the US daily said the
opposition had blocked "two of his central reform initiatives and brand
him 'anti-poor' and 'anti-farmer'".
On the economy front, the
Journal said Modi's government has avoided privatising state-run banks
and companies, "which could trigger unpopular job cuts".
"Despite
vows to improve India’s reputation for unpredictable tax collection,
the government has hit investors with demands for back taxes they say
they shouldn’t have to pay," it added.
Analysing Modi's “Make in
India†campaign, the Journal said the aim of supercharging manufacturing
growth to 12-14 percent a year, "is so far mostly hype". "In the year
ended March 31, manufacturing activity expanded by 6.8 percent, from 5.3
percent the previous year, with electricity shortages and congested
ports holding back growth," the report said.
According to the
daily, foreign institutional investors (FIIs) have pulled around $2
billion out of Indian stocks and bonds in May so far.
"India’s
benchmark S&P BSE Sensex is among the worst-performing major Asian
indexes this year, with a gain of 0.5 percent through Monday. Japan’s
Nikkei 225 and Hong Kong’s Hang Seng Index are up more than 16 percent
so far this year," it said.
The NYT said that if Modi was to succeed, "he must cope with a huge, fragmented bureaucracy".