PM Modi's Independence Day Speech Eyed for Big Reforms

Prime Minister Narendra Modi's first Independence Day speech from the ramparts of the Red Fort in Delhi will be closely watched for bold changes and big bang reforms that have so far been absent, analysts say.

So far, Mr Modi's government has taken incremental steps, like opening up foreign investment in some sectors, disappointing some economists. (Also read: Modi's magic intact in markets)

A leader with such a strong mandate "should be making policy with conviction, not emulating tactics of a defunct government," Surjit Bhalla, Chairman of Oxus Investments, wrote in a newspaper recently.

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Saurabh Mukherjea of Ambit told NDTV on Thursday that the articulation of policy so far is "not compelling enough" to suggest that the government has "stomach for difficult reforms". (Watch the full interview)

"There were a lot of hopes that we will see a lot of progress in the first 100 days...it hasn't happened, but we live in hope that tomorrow may be the beginning of some of those difficult decisions," Mr Mukherjea said.

During elections, Mr Modi had promised to revive growth that has fallen below 5 per cent, choking off job opportunities for the one million people who enter the workforce every month. He dangled the prospect of new roads, factories, power lines, high-speed trains and even 100 new cities.

But, there has been little movement on any of these gigantic tasks, analysts say. Mr Modi's government has not touched the costly subsidy programme that accounted for 2.4 per cent of GDP last fiscal. It has also refrained from cutting back costly welfare schemes launched by the previous government, which critiques say is an opportunity lost.

Economists say markets will be happy if Mr Modi lays out a convincing five-year vision for India. Mr Mukherjea says Prime Minister Modi's strategy to create jobs will be closely watched because the BJP had consistently talked about jobs during elections.

The government's focus on reviving the manufacturing sector, the key to large-scale job creation, will also be monitored, he says.

Finally, Mr Modi's tone and tenor on the trade-off between fiscal pragmatism and populism ahead of the crucial assembly elections later this year will be tracked, Mr Mukherjea adds.

(With inputs from Reuters)