(FE)
India’s national sales tax might be the last big-ticket reform from Prime Minister Narendra Modi as he prepares for about a dozen of state polls and seeks re-election in 2019, government officials say. Modi is expected to conclude already-underway measures such as the privatization of state carrier Air India then turn to issues that resonate with voters and insulate them from the impact of India’s slowing growth, said people familiar with the government’s program who didn’t want to be named, citing rules. This will include a boost to employment guarantees, irrigation and crop insurance programs, they said.
Pledging to take the economy on a higher growth trajectory, create jobs, fight corruption and eliminate red-tape, Modi won a thumping majority in the 2014 election. He is credited with making it easier to do business in India, reforming taxation and taking measures to pull banks out of their bad debt trap. Still, while global investors look favorably at Modi, his policies have not addressed the growing disenchantment among farmers and unemployed youth and senior members from his own party have warned he will pay the price when 1.3 billion Indians cast their ballots.
