Bhalla Says BJP Reform Drive Slowed as Rupee Hits Record 96.36

3 articles · Updated · India Today · May 21

Surjit Bhalla said the BJP’s repeated election wins have pushed the Modi government into an economic “comfort zone,” slowing hard reforms even as pressure on the economy mounts.
He pointed to stalled farm, land and trade reforms, arguing India’s investment mix has worsened since 2014: total investment stayed near 32% of GDP while public investment rose 5-6 points and private investment fell by the same amount.
Bhalla also blamed weaker foreign capital inflows on India’s 2015 Bilateral Investment Treaty overhaul, saying stricter arbitration and legal-remedy rules made India less attractive than rivals such as Vietnam and Mexico.
His warning comes as rising crude prices, West Asia-linked supply disruptions and a sharply weaker rupee — recently at a record 96.36 per dollar — add to economic strain.
Bhalla urged a return to the pre-2015 BIT framework, lower taxes for foreign investors, more predictable policy and a permanent end to retrospective taxation, arguing stability alone will not make India developed by 2047.

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