The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Indian Prime Minister Manmohan Singh.
Indian Prime Minister Manmohan Singh.
(B MATHUR/REUTERS)

BREAKINGVIEWS

India’s political vacuum tests patience of investors

Reuters Breakingviews delivers agenda-setting financial insight. Its global correspondents react to stories as they develop, delivering sharp and provocative commentary on big financial news as it breaks. Click here to read more international insights.

The $12-billion (U.S.) foreign investors have poured into Indian equities this year is not a gift – it’s a bet that Finance Minister Palaniappan Chidambaram will keep his promise to lift the country’s GDP growth from its 10-year low. But the government can’t deliver without lawmakers doing their part. The problem is that India’s national parliament, never a bastion of efficiency, has simply stopped working.