Modi "trumps" economic reforms in favour of political exigency: "The Economist" on Cabinet expansion

Jayant Sinha

By Jag Jivan
In a sharply-worded commentary, the influential British weekly, “The Economist” (June 9) has said that the latest Cabinet expansion by the Prime Minister is likely to affect his reforms agenda. The heading of the commentary, published under the Indian politics section, is significant: “Modi-fication: A swelling cabinet suggests that politics trumps reform”.
Particularly singling out the transfer of minister of state for finance Jayant Sinha, whom the weekly calls “an outspoken former investment banker”, “The Economist” regrets, he “will now be a junior minister for civil aviation”, with “two BJP stalwarts with little background in finance will share his old post.”
Sinha, a graduate with distinction from the Indian Institute of Technology, Delhi (IIT-D) and the Harvard Business School graduate, is known for his strong views on economic reforms. A member of parliament from Hazaribagh, Jharkhand, he served top consultants McKinsey for 12 years.
One who helped Modi frame national economic policy, including organizing and hosting an international business leaders' forum with Modi in February 2014, investors had cheered when Sinha, a former venture capitalist, when he was appointed in the finance ministry.
Articles written by Sinha, such as 'Strategies That Fit Emerging Markets' in the “Harvard Business Review” and 'It is time for India to rein in its robber barons' in the “Financial Times” are said to have been widely quoted in scholarly works and are used as reference material in business schools.
Among reasons being cited for his removal from the post is his father, Yashwant Sinha's strong and repeated criticism of the Modi government. Recently, Yashwant Sinha, a former finance minister attacked the government on key policies and strategy, like its dealing with the Nuclear Suppliers Group or NSG.
“Controversial ministers were moved to less visible posts, and technocrats replaced by figures with more populist appeal”, the weekly notes, adding, "With three years to go before a general election, Modi’s choice raises questions about how much he will get done.” It quotes an editorial in the daily “Mint” to say: “Jumbo cabinets are not exactly the optimal solution to governance challenges.”
The commentary says, “India’s can-do prime minister, swept to victory two years ago promising minimum government with maximum governance”, and after he came to power, his incoming team only boasted “45 ministers and ministers of state, compared with the unwieldy 77-person crew fielded by the previous government.”
However, the commentary observes, “On July 5, following his second reshuffle since taking office, Modi’s council of ministers ballooned to an even wobblier 78”, insisting, “Running such a sprawling, untidy republic does require a lot of people.”
The commentary says, “Only 27 of Mr Modi’s ministers will actually sit with him in cabinet meetings. The other 50 are junior ministers, tied to specific portfolios.”
Quoting unnamed “Government loyalists”, “The Economist” says, they believe “the extra hands will make it easier to carry out the prime minister’s ambitious reform agenda.” However, it adds, “Many among India’s noisy chattering classes fear the opposite is true.”
“The Economist” wonders whether the Cabinet reshuffle has anything to do with the elections, which loom next year in several crucial states, including the biggest state Uttar Pradesh with some 200m people, the prosperous Punjab and Modi’s home state of Gujarat.”
The weekly points to how last year Modi's “Hindu-nationalist Bharatiya Janata party (BJP)” was defeated in the polls in Bihar, “a state famed for convoluted politics based on group affiliations such as caste and religion.”
This, it suggests, may have made Amit Shah, “the party’s grizzled president and Modi’s closest henchman, determined to widen the BJP’s appeal well beyond its base among higher-caste Hindus.”
“The party has made special efforts to woo Dalits, or “untouchables”, who make up a crucial bloc of voters in Uttar Pradesh. Small wonder that among 19 newly minted ministers, ten are from what India officially classifies as 'backward' castes, and three are from Uttar Pradesh”, “The Economist” notes.

Comments

From Kerala to Bangladesh: Lynching highlights deep social faultlines

By A Representative The recent incidents of mob lynching—one in Bangladesh involving a Hindu citizen and another in Kerala where a man was killed after being mistaken for a “Bangladeshi”—have sparked outrage and calls for accountability.

Gram sabha as reformer: Mandla’s quiet challenge to the liquor economy

By Raj Kumar Sinha* This year, the Union Ministry of Panchayati Raj is organising a two-day PESA Mahotsav in Visakhapatnam, Andhra Pradesh, on 23–24 December 2025. The event marks the passage of the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA), enacted by Parliament on 24 December 1996 to establish self-governance in Fifth Schedule areas. Scheduled Areas are those notified by the President of India under Article 244(1) read with the Fifth Schedule of the Constitution, which provides for a distinct framework of governance recognising the autonomy of tribal regions. At present, Fifth Schedule areas exist in ten states: Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan and Telangana. The PESA Act, 1996 empowers Gram Sabhas—the village assemblies—as the foundation of self-rule in these areas. Among the many powers devolved to them is the authority to take decisions on local matters, including the regulation...

When a city rebuilt forgets its builders: Migrant workers’ struggle for sanitation in Bhuj

Khasra Ground site By Aseem Mishra* Access to safe drinking water and sanitation is not a privilege—it is a fundamental human right. This principle has been unequivocally recognised by the United Nations and repeatedly affirmed by the Supreme Court of India as intrinsic to the right to life and dignity under Article 21 of the Constitution. Yet, for thousands of migrant workers living in Bhuj, this right remains elusive, exposing a troubling disconnect between constitutional guarantees, policy declarations, and lived reality.

Policy changes in rural employment scheme and the politics of nomenclature

By N.S. Venkataraman* The Government of India has introduced a revised rural employment programme by fine-tuning the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which has been in operation for nearly two decades. The MGNREGA scheme guarantees 100 days of employment annually to rural households and has primarily benefited populations in rural areas. The revised programme has been named VB-G RAM–G (Viksit Bharat Guarantee for Rozgar and Ajeevika Mission – Gramin). The government has stated that the revised scheme incorporates several structural changes, including an increase in guaranteed employment from 100 to 125 days, modifications in the financing pattern, provisions to strengthen unemployment allowances, and penalties for delays in wage payments. Given the extent of these changes, the government has argued that a new name is required to distinguish the revised programme from the existing MGNREGA framework. As has been witnessed in recent years, the introdu...

Aravalli at the crossroads: Environment, democracy, and the crisis of justice

By Rajendra Singh* The functioning of the Ministry of Environment, Forests and Climate Change has undergone a troubling shift. Once mandated to safeguard forests and ecosystems, the Ministry now appears increasingly aligned with industrial interests. Its recent affidavit before the Supreme Court makes this drift unmistakably clear. An institution ostensibly created to protect the environment now seems to have strayed from that very purpose.

Making rigid distinctions between Indian and foreign 'historically untenable'

By A Representative Oral historian, filmmaker and cultural conservationist Sohail Hashmi has said that everyday practices related to attire, food and architecture in India reflect long histories of interaction and adaptation rather than rigid or exclusionary ideas of identity. He was speaking at a webinar organised by the Indian History Forum (IHF).

'Structural sabotage': Concern over sector-limited job guarantee in new employment law

By A Representative The advocacy group Centre for Financial Accountability (CFA) has raised concerns over the passage of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (VB–G RAM G), which was approved during the recently concluded session of Parliament amid protests by opposition members. The legislation is intended to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

'Festive cheer fades': India’s housing market hits 17‑quarter slump, sales drop 16% in Q4 2025

By A Representative Housing sales across India’s nine major real estate markets fell to a 17‑quarter low in the October–December period of 2025, with overall absorption dropping 16% year‑on‑year to 98,019 units, according to NSE‑listed analytics firm PropEquity. This marks the weakest quarter since Q3 2021, despite the festive season that usually drives demand. On a sequential basis, sales slipped 2%, while new launches contracted by 4%.

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor* This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

Search This Blog