Prime Minister Narendra Modi’s problems have compounded as the new year ushered in a host of old problems. All at once, these problems have aligned themselves in an ominous way, leaving him no room but to change the guards at the helms of financial and other affairs that impact the life of the largest number of people.
Threatening to dent his credibility further, inflation looks like spinning out of the RBI’s glide path, factory output has failed to revive hope, domestic investment remains sluggish and promised job creation is not visible. At the same time, global headwinds, particularly the insidious depreciation of the yuan that is already down 20 percent from the low level of June-August turmoil of China’s economy, have turned people highly skeptical about his ability to bring about the promised ‘good days’. And the worst blow has come by way of capital outflow despite his impressive journeys abroad in 2015 to attract capital inflows
There has been incessant speculation for some time about the change of guards in crucial portfolios. That may well be round the corner, and could come about any time soon. At the moment, the Prime Minister is said to be in the process of evaluating the achievement of various ministries and figuring out whether the current cabinet arrangement is sufficient to resolve the problems facing the country and help him recover his lost charisma in the next three years when he has to report back to the people and seek their fresh mandate.
Once he has done his home work, he may or may not decide to reshuffle his cabinet.
Written by: M K Shukla (Editor)