Technology boom may help Modi turn 2015 into India's year

If there was an annual prize for the "World's Most Hopeful Economy", it would probably go to India. After years of disappointing returns, the world's largest democracy rediscovered vigour in 2014. Stocks rose by a third; foreign investment grew; the economy at one stage expanded at its fastest pace in two years. And the public mood seemed to lift with new hope for a young, tech-savvy India.

One man dominated the headlines, peddling optimism: new Prime Minister Narendra Modi. And, yet, 2015 marks the end of Modi's honeymoon. After all, hope can only go so far.

Modi will need to transition from speechmaker to doer. That suggests 2015 will be a defining year for India. Let's start with economics. Cheaper oil is proving a boon to India's economy: the deficit has shrunk, inflation has fallen, and perhaps most crucially, the government has ended decades of subsidies and deregulated diesel. New taxes on oil look set to generate billions of dollars in excess revenue every year.

India's government will look to use that money well. Can it deliver clean water and power to all Indians? Can it improve the broken infrastructure? Can it begin to fulfil its promise to put a toilet in every home? Or has too much been promised?

India needs more money and investment, likely from abroad. And Modi will need another important currency: cooperation from lawmakers.

Foreign policy has come easily to Modi so far. He will begin 2015 basking in the glow of receiving US President Barack Obama at India's Republic Day on January 26. Good foreign policy means good business. Modi will look to strike deals not only with Obama, but with many other world leaders in 2015 - on energy, on trade, defence, and on infrastructure partnerships.