New Delhi sources have stated that with a landmark goods and services tax now rolling out across India, Prime Minister Narendra Modi is likely to turn his focus to job creation and other key economic reforms.
It was stated that big structural steps, such as revamping India's land acquisition and labor laws, are unlikely to occur before the next national election, scheduled for 2019, as PM Modi's Bharatiya Janata Party still lacks a majority in the upper house of parliament.
Currently PM Modi's administration will also have to dedicate considerable
resources to ensure the success of the new, nation-wide GST, which took effect on
July 1 after a midnight launch ceremony and has already caused some economic
disruption. Meanwhile India remains one of the fastest growing economies in
Asia, employment creation was the slowest on record in 2015, with just 135,000
net new jobs in the formal sector of the economy against the 12 million
estimated new entrants to the workforce.
