A cloud of uncertainty hangs over India’s economic policy agenda. Two key concerns have emerged. First, whichever political party wins the Lok Sabha elections – on from 11 April to 19 May 2019 – one thing is certain: in the name of poverty reduction, public spending is set to increase on lazily-thought-out schemes.
Second, it is also widely expected that the new government will likely have a smaller majority in the Lok Sabha than the current government, and may, therefore, find it tough to garner support for difficult reforms on which the political consensus is weak. Except, these reforms can no longer be postponed without seriously damaging the economy’s underlying growth prospects.