India's Hindu right constrains Modi's economic agenda

Subject

Modi's political compulsions.

Significance

Prime Minister Narendra Modi's government recently indicated that it will no longer pursue radical amendments to land acquisition laws, and will accept the substance of the law passed by the previous Congress administration. This comes after the government's own amendment bill became stuck in parliament due to its lack of an upper house majority and its controversial use of amending executive ordinances. Its response reflects pressure not only from the opposition but also Hindu nationalist cadres.

Impacts

• Economic reform will prove obdurate so long as the BJP lacks an upper house majority.
• In response, the centre will encourage state governments to pursue liberalisation, in key areas such as land.
• This will have mixed results: industrialised states (eg, Maharashtra) will be more receptive than poorer states such as West Bengal.