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Govt's key reforms fail to gain traction as pandemic upends India's economy

Modi's administration has delayed payments it promised India's 28 states as compensation under the new consumption tax regime, increasing tension between the two tiers of government

Daily wage migrant labourers gather alongside a road as they wait for work, amidst the coronavirus outbreak, in Ahmedabad
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Daily wage migrant labourers gather alongside a road as they wait for work, amidst the coronavirus outbreak, in Ahmedabad

Anirban Nag | Bloomberg
India’s delay in appointing a new central bank committee to decide interest rates is just the latest of Prime Minister Narendra Modi’s key economic reforms that are failing to gain traction during the nation’s worst crisis in decades.

Three of his major policies -- the goods and services tax, a bankruptcy and insolvency law and the Monetary Policy Committee -- have been mired in problems since the Covid-19 outbreak upended economic activity.

Modi’s administration has delayed payments it promised India’s 28 states as compensation under the new consumption tax regime, increasing tension between the two tiers of government. The bankruptcy law has