Reforms will happen but not as fast! Not likely to be as big-bang in nature as projected in the media

We will take the reforms agenda forward, but not at the cost of development and not at the cost of state firms." This statement by one of the leaders of the Congress party and published in a leading daily highlights the importance of tempering one's optimism over the re-election of the UPA government. Let us not forget that this is the same party that came out with social schemes like the farm loan waiver and the rural employment schemes. Hence, to expect a reforms overdrive from the new government will be akin to asking for a little too much. Of course, the scenario is a lot better this time around as there are no left parties to take two steps backwards for every one step that the UPA government will take forward, but the fact remains that a move towards more reforms is likely to progress at a slow pace at best. Furthermore, unlike 1990-91, where problems were India specific, a synchronized slowdown has engulfed the world and this will give the government more leeway to implement their plans. In a nut shell, reforms will happen but not as fast and they are not likely to be as big-bang in nature as is being expected in certain quarters