Deepavali is the time to look at the brighter side of life and spread cheer. So, silver linings rather than the dark clouds that hover over us beckon a look. It is not easy to see many silver linings but worth a try in this festive season.Top among the somewhat cheerful developments of recent days is the more resolute or, rather, the less hapless stand of the government on reduction of wasteful expenditure and cutting the fiscal deficit.
The advent of Chidambaram in the finance ministry has led to more realistic appraisal of the challenges the economy faces. A suitable communication of these has led the ruling party to back the reforms openly.
The Union Cabinet has been rejigged to give a relatively fresh facade and it appears the futility of inaction as the preferred option has been realised at the very top.
The prospects of a determined push towards higher growth look brighter now than in the past four years.
Tax reforms by way of a simpler Direct Taxes Code and a Goods and Services Tax, besides notable moves on legislative changes to economic laws such as the Companies Act of 1956, the Competition Act of 2002, pension, insurance and initiatives such as the moves to restructure the finances of state electricity boards actually look like going forward.
The chances of stalled infrastructure and other major projects moving forward look better with the proposed National Investment Board.
The top echelons of the government and ruling party seem to realise that merely throwing money on the pretext of greater inclusion without adequate economic growth cannot work in the long or even the medium run.
The limitations of populism seem to be dawning even on the opposition, non-government