Economic Reform in India: Can Narendra Modi walk on water?

The Indian government announced plans to put the economy back on the path of strong economic growth and reform, with 7-8% GDP growth expected within three years. The recently elected Prime Minister, Narendra Modi, was lauded by the economic press in the run up to the elections and many have declared his victory a new dawn for India.

International investors have responded with massive inflows into India which has driven equity markets higher; the BSE SENSEX Index has risen almost 24% since mid-February. However, he is now faced with the difficult task of delivering on heightened expectations with the initial response to his first budget announcement last week relatively muted.