The United Progressive Alliance (UPA) government will finally have the space -- if not the desired time - to fast-track policy reforms held hostage to Left ideologies for the past four years. Clearly, the strategy for key economic ministers will be to expedite proposals such as hike in foreign direct investment limits in key sectors and disinvestment in state-owned companies that are in the executive domain and can be cleared by the Cabinet.

With double digit inflation and signs that the economy is stuttering, the government will find itself being pulled in opposite directions: sustaining the growth momentum and keeping prices under check. While this will be a challenge in itself as the Prime Minister said today, ministers will, hopefully not lose sight of the window of opportunity that is open for just nine months now.

Most important for the government would be to spruce up its administrative machinery and extract decisions from the various committees and group of ministers (GoMs) constituted for almost every major policy issue that eluded consensus. At last count, there were as many as 80 GoMs set up to iron out differences between ministries on a spectrum of issues raging from special economic zones to drug pricing.

Even as it does that, administrative ministries may well seek to open up the investment floodgates in a host of sectors. For instance, commerce and industry minister Kamal Nath will like to push for FDI in the retail sector. The Cabinet had earlier allowed single brand foreign retailers 51 per cent stake in joint ventures, but restrained multi-brand retailers to operate only through wholesale or franchise and licence operations. Similarly, civil aviation minister Praful Patel would table the Civil Aviation Policy before the Cabinet and perhaps spell out a timeframe for allowing foreign airlines pick stakes in domestic carriers.

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