Congress skates on thin parliamentary ice

Don't worry, be happy

Markets have priced in the slow pace of reform as something in India's DNA and are resigned that this democracy of 1 billion people and more than 20 official languages will never be able to compete with rival China when it comes to bulldozing policy.

And some in the government say don't worry about speed.

"Nine percent growth even without those reforms we will manage," said Kaushik Basu, chief economic adviser to the finance ministry.

But the coalition's weakening came quicker than expected. This was meant to be an easy year for Congress, riding high after re-election and with few state elections to worry about.

The women's bill put a stop to that. The withdrawal of the Samajwadi Party and the RJD from supporting the coalition in protest cost Congress 26 seats in the lower house.

Congress has 208 seats - 64 short of a majority - and it relies on a host of other parties to stay in government.

Two regional parties within the coalition, Trinamool Congress from West Bengal and the DMK from Tamil Nadu, have opposed the government over fuel price hikes in the budget, although they are staying in the coalition.

The majority coalition may be in fact be the equivalent of the fairy tale's emperor with new clothes.

"The Congress party has to stop deluding itself that it has a two-thirds majority in parliament," wrote political analyst Manoj Joshi in the Mail Today. "It does not even have a majority."

Congress has realised it made mistakes.

"We should have held more consultations with the opposition parties, particularly the BJP," one senior Congress party leader and government minister told Reuters on condition of anonymity.

The opposition appears invigorated, especially the BJP. It is renewing its leadership and is challenging the government over its Achilles heel - food inflation.

Food inflation and the need to recover from the global crunch have already distracted Congress from introducing new policies. Now political mistakes have cost it wasted weeks in parliament.