Cautious optimism after Indian coalition wins “trust” vote

Today’s narrow confidence vote win, by 275 to 256 votes, gives a much needed boost of political capital to India’s beleaguered Indian National Congress (INC) party. We are cautiously optimistic that the development will spell a change in economic policy. However, the government’s middling track record on economic reform and an increasingly challenging economic environment mean that there is still ample room for disappointment.