The government’s reform agenda struggled for momentum in 2022 as key state elections (notably in Uttar Pradesh in March and Gujarat in December) dominated the calendar, and surging food and fuel prices set a tricky political backdrop. But the results of those state elections have shown that the ruling BJP still maintains plenty of goodwill. And a relatively light state election calendar in 2023 means that it could push ahead with contentious but growth-enhancing reforms over the next few months, before the build-up to the general election in mid-2024 kicks off in earnest. We will be watching for signs that some of the labour and land reforms that have been enacted at the state level over the past three years or so get ramped up to national level. In that regard, the Union Budget announcement for FY23/24 (due on 1st February) is the first important date for investors to note.
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