Reform fatigue: How can Modi overcome political challenges?

India's equity markets have suffered in recent months as Prime Minister Modi's reformist agenda continues to hit political roadblocks, but could upcoming state elections lead to a breakthrough?

Narendra Modi swept to power in May 2014 on a wave of optimism about the wide-reaching impact of his reform programme. The BSE Sensex soared by more than 25% between May 2014 and the end of January 2015 following the election of Modi's Bharatiya Janata Party (BJP) last year. Investors piled into Indian equities on the back of the party's plans for major reforms of labour, goods, and property markets. However, this year their enthusiasm has waned as Modi has come up against political opposition to his planned reforms. These pressures have concerned investors, with the S&P BSE Sensex down ...