AK Bhattacharya: When politics rules the roost - Business Standard

It is an irony that few will fail to notice. One of the main charges against the United Progressive Alliance (UPA) government in its second term was that it suffered from policy paralysis. A series of corruption scandals hit the UPA government, but its political leadership failed to respond to them with adequate measures. Worse, it lost appetite for economic reforms.

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Things changed in the last few weeks. The government, it seemed, got its act together. The Union Cabinet approved a Bill allowing foreign direct investment (FDI) in the pensions sector and giving its regulator statutory status. Also approved were Bills for introducing a new companies law and a legal framework for land acquisition for projects and rehabilitation of displaced people. And then there was the Cabinet decision to allow 51 per cent foreign equity in multi-brand retail and all hell broke loose. However, the Cabinet decision to allow FDI in retail will take effect once the government issues a notification. The government will not be required to go through a long and arduous legislative path before it becomes policy. That is why the Opposition parties raised a hue and cry over FDI in retail. But the irony of it all was that until the other day, the same Opposition political parties were accusing the UPA government of inaction and lethargy over taking policy decisions.

AK Bhattacharya: When politics rules the roost - Business Standard