Reforms will decide the coming days of Indian economy, global credit rating agency Moody's expressed this view in a recent report. It said that the Government's capacity to implement reforms and policy effectiveness will decide the economy's rating going forward. Relaxation of foreign investment restrictions, passage of the GST bill and advancement of a workable bankruptcy code, these areas are especially pointed out by the report. The view sounds logical and I think the Centre, instead of seeing future success as guaranteed, must focus on continuing the reform path to ensure growth.

During the first two years of the Modi government, people talked about absence of “ground-breaking” reforms, but we cannot take away the positives of the government during this period. FDI norms have been relaxed in more than a dozen sector, several measures to cut red tape have been introduced and many social benefit schemes have been launched. Also, the Government fast-tracked road building, railway and highways projects. Then in 2016, several key reforms, including the Aadhaar Act, Mines and Minerals Amendment Act, the Real Estate Act, and the Insolvency and Bankruptcy Code have been introduced.

We cannot deny the fact that most economic indicators today show that our economy is now on a much better footing than it was under the last government, but at the same time we cannot help but accept the fact that a lot has yet to be done. Despite strong economic fundamentals, corporate spending and consumer spending are not picking up much. The infrastructure sector requires more financial infusion. Also, urgent steps are required, among others, to push manufacturing, employment generation, skill development, R&D, ease of doing business, savings in the economy, and progress on land acquisition and labour reform, GST and bankruptcy code.

Besides effects of the demonetisation scheme, progress of the GST bill and measures in the upcoming Budget, I think two other major factors might define the year 2017. First, the US policies, including a new tax plan, under Donald Trump who is also vocal for his stringent immigration policies. Second, results of the assembly elections in five states that will be held between February 4 and March 8. If BJP wins in these states, particularly in UP, which contributes 31 members to the Rajya Sabha, the party's strength will get a big boost in the House.

I invite your opinions.