Political Economy of Transition from Manmohanomics to Modinomics

The inaugural budget of the NDA led government has been a cause of some surprise and disappointment amongst those who were eagerly expecting a new radical dose of neo-liberal reforms. It appeared that the ‘policy paralysis’ of the past government had survive the change brought about by the elections. However, the ‘reform’ process so far had already created great inequality which also eventually resulted in slowing down of investment and growth and other problems like inflation and external deficits. The limits to pushing ahead with such reforms in this background was what was reflected in the fact that the main budget has simply carried forward the measures of the interim budget – limits which could be sought to be eased by changing the political scenario of the country in particular directions.