As an election campaigner, Narendra Modi promised sweeping market reforms to revive India's economy and put the country to work. As prime minister, he has dismayed admirers, apparently reverting to the script of the hapless government he defeated.
Prime Minister Narendra Modi waves to supporters during a public rally in Kargil. (AFP Photo)

To some of the economists and business leaders who as his campaign cheerleaders dared to dream of a Thatcherite revolution, he seems not to be listening. Three months after his win, it is dawning on them that their views count for little.

"As of now, the momentum is lost. They might still recover it, but we have lost the moment," said Bibek Debroy, a prominent economist who co-wrote a book laying out a reform agenda that the new prime minister himself launched in June.

Debroy told Reuters that so far there had been no signs of the promised change at institutions sapped by graft and over-regulation that many Indians have grown to revile.

Back in the heady days of the election campaign, Modi and his supporters seemed much more in tune, all lambasting the last centre-left government for years of waste and policy paralysis and building expectations of a regime of "minimum government and maximum governance" that would unshackle key sectors of the economy from the state.

But now there is a sense that the 63-year-old Bharatiya Janata Party (BJP) strongman, who made his reputation putting his home state Gujarat on a high growth path, has somehow stumbled in New Delhi.

To be fair, the government has a five-year term to achieve Modi's goal of transforming India into an economic and military power able to withstand the rise of China on its doorstep.

On Friday, Modi will make his first Independence Day speech from the ramparts of the Red Fort in Old Delhi, and the expectation within his party is that he may use the occasion to announce bold changes that have so far been absent.

According to economists at HSBC, the government has already moved with "unaccustomed alacrity" on a number of fronts, such as opening up the state railways to foreign investment and providing new guidelines for a more streamlined bureaucracy.

A crucial meeting of the Political Affairs Committee of the Aam Aadmi Party (AAP) began on Monday to discuss the results of the public referendum on whether or not to take Congress support in forming government in Delhi.

According to reports, meeting is being attended by all top AAP leaders, including Arvind Kejriwal, Manish Sisodia, Dr Kumar Viswas and all newly-elected MLA of the party.

After the meeting, the AAP chief is likely to hold a press conference to announce his party's decision on the issue of government formation in Delhi.

Kejriwal is also due to meet Delhi Lt Governor Najeeb Jung in the afternoon to apprise him about his party's stand on ending the political stalemate in Delhi.

Kejriwal's meeting with the Lt Governor comes amid clear signs that his party is preparing to take power in Delhi with Congress support.

After five days of a virtual referendum on whether or not AAP should form a minority government, there were enough indications - but no announcement - that the one-year-old AAP was ready for the plunge.

Officially, senior AAP leader Manish Sisodia, who could become a minister if Kejriwal forms a government, told that the final decision would be taken only Monday morning.

“I can't say now if we will indeed form a government,” he said late Sunday. “We still need to hold a few meetings. The final decision will be taken only on Monday.”

Kejriwal said earlier Sunday that “a major announcement” would be made Monday. The party said the activist-turned-politician would meet the media Monday before meeting Jung.

As the party's campaign to elicit a 'yes' or 'no' from people in the capital on government formation entered its final phase, the AAP said that most voters favoured an AAP government.

“Majority of the feedback we have received is 'yes',” spokesperson Ashwathi Muralidharan told reporters.

The party has got responses from over 6.5 lakh people through SMS, interactive voice response (IVR), Facebook and the AAP web site, she said.

Separately, AAP held public meetings in some 270 municipal wards across Delhi where too most people rooted for an AAP government by raising their hands, party leaders said.

A former Indian Revenue Service officer whose social activism won him the Ramon Magsaysay award, Kejriwal indicated that his party was readying to take power with Congress backing.

He denied that the promises made by his party – providing 700 litres of water daily to homes and sharply cutting power tariff among others – were utopian in nature.

“We will deliver whatever assurances we made in our manifesto. It (manifesto) was prepared after wide consultations, and a lot of thought went into it,” he told the media.

“Moreover, the people of Delhi are expecting much more from us, and we will perform.”

Later in the evening, Kejriwal told a public meeting in Sarojini Nagar in south Delhi that his party will keep “returning to the people” on major issues – even after forming a government.

“This is democracy, this is real democracy,” he said, denying criticism that the AAP decision to seek a referendum on whether or not to take power was “nautanki” (drama).

But AAP leaders made it clear that there would be no alliance with the Congress, which has only eight seats in the 70-member Delhi assembly but which, after being ousted from power, agreed to prop up a government of AAP (28 seats) in order to keep the Bharatiya Janata Party (BJP) away.

The BJP, which finished as the largest group with 31 seats, decided not to form a government after falling short of the half-way mark by five.

The BJP's 'no' led the Lt. Governor to invite the AAP to try form a government. Kejriwal then said he was in a moral dilemma on whether or not to take power with Congress help.

So he decided to seek the views of the people in the capital, a move which again Sunday came under criticism from the BJP.

BJP leader Arun Jaitley said on Facebook: “The AAP had categorically stated that it represents alternative politics. It is guided by idealism. It will neither support nor accept support from either the Congress or BJP.

“Obviously, if the AAP stands by its publicly stated commitment, the Delhi assembly becomes a deadlocked assembly wherein after a reasonable time a fresh poll has to be ordered.