New government unlikely to tweak trade policy

The Prime Minister is quite capable of managing such an outcome through negotiations and persuasion

The new coalition government led by Prime Minister Modi is unlikely to bring about any major changes in the trade policy that is characterised by high tariff and non-tariff barriers on imports, bilateral trade negotiations for free trade with select countries, and export promotion through some duty exemption schemes for imports of capital goods and inputs required for export production.

The partners in the coalition government are regional outfits like the Telugu Desam Party, Janata Dal (United), Shiv Sena (Shinde faction), Janata Dal (Secular), who are more concerned with securing the interests of their constituencies, parties, and States. Once their