Advertisement
Business

Manmohan Singh faces fight for India reforms

Indian leader loses his parliamentary majority over plans to revitalise the nation's economy but also faces criticism of doing too little, too late

Reading Time:3 minutes
Why you can trust SCMP
Prime minister Manmohan Singh is refusing to back down on reforms in the face of labour protests and political threats. Photo: AP
Kevin Rafferty

Indian Prime Minister Manmohan Singh has belatedly found the political courage to try to put economic reforms back on track, but it may prove a case of too little too late.

His reforms include cuts in subsidies for diesel fuel; greater involvement for foreign investment especially in controversial sectors such as supermarket retailing, power, broadcasting and civil aviation; and the sale of stakes in four government-owned companies.

An explosive backlash has started, including demonstrations and nationwide strikes and the resignation of six ministers as a key partner in Singh's Congress Party-dominated United Progressive Alliance government quit in protest.

Advertisement

The departure of Mamata Banerjee's Trinamool Congress cost Singh his slender majority in parliament, and left open the question of how to implement the reforms.

At least Singh, after years of dithering, is sticking to his guns in spite of the loss of his majority.

Advertisement

In successive days of interviews and speeches, he claimed that the reform measures were essential. "We must act before people lose confidence in our economy," Singh said.

Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x