NEW DELHI: India's Prime Minister Narendra Modi has unleashed a slew of reforms in the past week, scrapping fuel subsidies, simplifying labour rules and pledging to open coal mining to private players in a bid to kickstart the economy.
The reforms are seen as some of the most significant since Modi's right-wing Bharatiya Janata Party (BJP) in May scored India's biggest electoral win in three decades.
But analysts say the reforms so far represent the low-hanging fruit, and warn Modi does not yet have enough upper house seats to push through more politically sensitive changes that are key to getting growth back on track.
Modi has faced criticism that he has been slow to act on his election promise to revive India's lumbering economy and create much-needed jobs for its 1.2 billion people.
"Modi is determined to make doing business in India more easy," Deepak Lalwani, India director at London-based consultancy Lalcap, told AFP. "That should attract foreign investment."
In a week Modi has reduced paperwork and inspections of factories to ease the burden of manufacturing in India, which is currently at an unenviable 134th on a World Bank ease-of-doing business chart.
In a bow to free markets, his government released diesel pricing from state control, ending a battle for eliminating subsidies on the largest component of Indian fuel consumption.
It also cleared a delayed increase in domestic gas prices, hiking by one-third the amount the government pays natural gas producers to encourage exploration in the fuel-hungry nation.
Economists have long argued India's potential will only be unleashed when it curbs subsidies, relaxes suffocating regulation and rigid labour laws and eases complex rules governing industrial land acquisition.
On Monday the government announced measures to pave the way for private companies to sell coal, helping to break the monopoly of one of the world's biggest mining giants, Coal India.
Modi's government is also readying to sell a five-percent stake in state-run heavyweight Oil and Natural Gas Corp. in the hope of raising $3 billion, which would help trim this year's fiscal deficit.
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