The winter session of parliament ends tomorrow and it seems that the increasingly unruly Indian parliament will not pass laws to open up the insurance and coal sectors. If so, PM Modi may consider resorting to a rarely-used executive order to lift the foreign investment limit in the insurance sector to 49% from 26%, and to renew another order opening up the coal industry to the private sector. Such an order will need approval by lawmakers within six weeks of the opening of the next session of parliament - scheduled for early February. India's president would also need to agree to the decree. We had expected Modi to push through the insurance and coal reforms because they enjoyed rare bipartisan support. However, opposition parties have been protesting in parliament for more than a week on a religion conversion issue. If the insurance and coal sector reforms do not go through there will be growing impatience among investors for a quicker pace of reforms.

David Fuller's view

Here is the India Report.

Leading India’s complex democracy must feel like the Labours of Hercules, and Narendra Modi applied for the job!  Fortunately, he is supported by a majority of India’s electorate.  The prize for success on behalf of India’s citizens, corporations and investors is considerable.