Narendra Modi government to focus on executing key projects to build credibility

IT and Telecom Minister Ravi Shankar Prasad will review the implementation of the Digital India plan with states this week. All other ministries have also been given schedules.

"Timelines have been given with the action plans... Plans are being monitored in respect to the prescribed timelines," said a senior government official with an infrastructure ministry. The winter session of Parliament is expected to be packed with legislative action. The Narendra Modi government, which came to power with a landslide victory, wants to ensure it builds on that electoral success.

An uptick in macroeconomic indicators is providing much relief with some visible signs of revival, inflation abating and the twin deficits much in control. There is an expectation that the investment cycle could go back up quickly.

"The steps taken in the budget seem to have had the desired impact," said a finance ministry official. Economists agree that the India story has begun to turn around and that having a decisive government in place has played a significant role in this.

"Macro stabilisation is underway — growth-inflation balance, twin deficits are improving," said Citi economist Rohini Malkani in a note. "While there can be plenty of debate on pace and timing, India is on its way back to 7% growth and 6% inflation."

She added: "There's a cyclical and sentiment boost, but India is largely a 'self-help' story: There's a strong and new political will, coupled with a credible and active central bank. Modi — growth, execution and ambition (beginning to unfold); Rajan — monetary framework and financial sector reform (executing energetically). And, as evidenced on inflation, they are working together. Pin it to personalities, but this mix is steadily changing India's dynamics," Malkani said.


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