The Sensex ended the day well over the 14,000-mark, gaining a substantial 254 points, a clear signal it expected the government to continue and, therefore, reform to get a booster dose. The business community expects the government to sell small stakes in PSUs that do not require Parliamentary approval, in order to reduce the burden on the fisc.
However, despite the bullishness in business circles over the outcome of the trust vote, privately a number of business leaders also say that while executive powers exercised by the government will be able to push through some reforms, those requiring Parliamentary approval may still pose a challenge.
Few in the business community are, for instance, betting on major reform in banking, insurance and pensions, since that would require going to Parliament, and clearing that hurdle may still be a tough ask for the UPA government, with the smarting Left and BJP still baying for blood.
"There can be more reform in civil aviation, telecom and even in retail. But the big ones may be tough," says a CEO, requesting anonymity. "The government may tease the Left a bit, but pushing the big reforms through won't be easy even now."
v.krishnamoorthy |
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Moneycontrol 
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