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Executive-judiciary tussle could stall Modi's reforms

Thursday, July 2, 2015

Subject

Tensions between the executive and judiciary -- and their impact on economic policy.

Significance

Since the 1990s, the Supreme Court has strongly asserted its autonomy and become highly interventionist, especially concerning issues such as environmental protection. Prime Minister Narendra Modi's economic reform programme will need the Court's approval to be implemented legally. However, his government's relations with the Court are tense and risk further deterioration over the controversy surrounding new procedures for the appointment of judges.

Impacts

  • An adverse ruling on ordinances would plunge the land acquisition reform into deeper chaos, stalling infrastructure projects.
  • The Court has not taken anti-business decisions in areas such as retrospective taxation, but such disputes themselves erode confidence.
  • Senior judiciary is unlikely to succeed in resisting pressure for greater transparency and accountability.

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