India Defers Land and Tax Reforms

The government spooked investors on Tuesday by deferring parliamentary bills intended to make it easier for businesses to buy land and harmonize national and state taxes.

In a setback for Prime Minister Narendra Modi’s reform program, the opposition Congress party on Tuesday succeeded in delaying the measures in parliament, prompting a more than 2 percent fall in shares.  The government was compelled to send the proposed legislation to two different parliamentary panels for a review.

The ruling Bharatiya Janata Party (BJP) has the biggest majority in Lok Sabha in 30 years but it is dependent on Congress and other parties to pass bills in Rajya Sabha.