The Economist magazine, which once called Modi a 'divisive man', has published a hard hitting article calling for changes in style and priorities. It said Modi has "time is on his side" and he can bring about the change all alone.
Inflation has fallen and is now in a comfortable range, though the government's contribution in achieving this has been minor, and low crude oil prices did the job. The BJP and allies have a majority in the Lok Sabha and the opposition is feeble. In the Rajya Sabha, the BJP is in a minority. It said the Prime Minister thinks that he can wait until his party gets a majority in Rajya Sabha to take unpopular decisions, says The Economist. "That rests on a delusion among Indian leaders that they must consolidate power first and reform later," says the report.
The second issue is Modi is a 'one-man band'. Despite experts and observers warning against his style of functioning, Modi has largely not been seen as compromising his authoritarian attitude.
Even the finance minister Arun Jaitley has not been spared in the article. Jaitley's refusal to recapitalise banks and increase public spending is delaying the revival. The investment community is wary of the slow pace of reforms and FIIs have been at the forefront of the angry voices from the investment community.
"So far, the new government has done nothing but talk, and it is a shame because Modi had experience; he said he knew what needs to be done," investing guru Jim Rogers said in a recent interview to Livemint .
What has irked the FIIs is the double talk of the government on Tax issues. Though the BJP has been critical of the UPA's 'tax terrorism', tax department has sent demand notices worth Rs 602 crore to investors pertaining to the income they earned in the earlier years as if a retrospective tax.
The report it says the BJP is "short of capable leaders" to strengthen ministries like finance and corporate affairs, it says. The two ministries have been drawing a lot of criticism for not living up to the expectations, while the power ministry is seen as the best performing.
The prime minister is also urged to set aside his uncompromising attitude and make adjustments in Parliament. The article calls up Modi to understand that he is not the chief minister of Gujarat but is the leader of the nation.