From ruling out competitive bidding to fighting against low-cost airlines, there are many economic factors that will determine the success of the project.
In the last year, the Centre has moved to swiftly clamp down on Chinese steel imports to help NPA-laden Indian firms. However, China’s own capacity cutbacks have rendered this move meaningless.
Taxes currently constitute 45%-52% of the retail price of auto fuels, far higher than what would it be if petrol and diesel was brought under the Goods and Services Tax regime.
Exports from labour-intensive industries have either showed outright declines or reported anaemic growth. This is an ominous sign for job creation in India.
Falling capacity utilisation of power plants is a clear indicator that electricity demand has sagged under the NDA regime, raising a question mark over the efficacy of UDAY and other power sector reform measures.
While firms in the FMCG and auto sectors have done well, certain power, steel and telecom companies – where access to natural resources and political connections are crucial to success – have performed horribly.