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Indian PM gets off to a good start

Published Wed, May 28, 2014 · 10:00 PM
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INDIA'S new Prime Minister, Narendra Modi, is an outsider to the traditional power structure of the country and for this reason many expect him to bring in fresh ideas as head of the government. Mr Modi has, so far, lived up to this expectation. He engineered a diplomatic coup of sorts by inviting leaders of the Saarc (South Asian Association for Regional Cooperation) nations and Mauritius to his swearing-in ceremony on Monday. This is a first by an Indian prime minister. And it was not just a symbolic gesture: Mr Modi got down to serious talks with each of the leaders the next day.

India is a very important neighbour for all the countries and it was good that they got an opportunity to meet the new leader. The most important discussion Mr Modi had was with his Pakistani counterpart, Nawaz Sharif. He did raise Indian concerns about terrorism emanating from Pakistani soil but the thrust of the discussion was on trade. Both leaders have won their elections with landslide victories and are business-friendly. They have the mandate to transform the bilateral relationship into one driven by trade rather than politics.

Mr Modi has got off to a good start on this issue. Apart from this foreign policy foray, the first decision Mr Modi took was to announce the formation of a special investigation team to probe black money, most of which is stashed abroad. Some estimates reckon India's black economy is worth between 50 and 70 per cent of gross domestic product. Mr Modi's election slogan of minimum government and maximum governance has also resonated with the electorate. In keeping with this, he announced the smallest Cabinet that India has ever had. For synergy, he has clubbed related departments into one super ministry for better coordination. For example, road transport and shipping have been merged into one ministry, while urban development has been merged with housing and urban poverty alleviation. But while the start has been promising, it remains to be seen how Mr Modi and his team follow through. One of the problems the ruling Bharatiya Janata Party faces is a lack of experienced administrators. Navigating India's byzantine bureaucracy and getting things done can be a herculean task even for the most experienced leaders.

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