PM Modi's first two years end on a high note

Two years on from his inauguration, Prime Minister Narendra Modi has arguably just enjoyed his most successful month in office. For a start, PM Modi's BJP secured two important legislative victories in the latest session of parliament. The first was the approval of a new bankruptcy code, which should help to improve the business environment and ease constraints in the banking sector. The second was the passing of amendments to a long-standing tax treaty with Mauritius, which should help to boost tax revenues.

In addition, the BJP performed as well as could have been reasonably expected in recent state elections, with the ruling national party winning emphatically in Assam (see Chart), and making small gains in West Bengal and Kerala. The BJP still faces a tough challenge in pushing politically-contentious measures through parliament, but the outlook for reforms has brightened a touch.