Speaking on Bloomberg TV India, Carnegie’s Milan Vaishnav argued that expectations for the Modi government need to be toned down. He explained that the opportune moment for Modi to create major political and economic change has basically passed. Modi has failed to use the ‘bully pulpit’ to contain nationalist distractions and lobby for economic transformation. As a result, Vaishnav said, voters, investors, commentators are recalibrating expectations about the government’s ability and willingness to create change.

Going forward, Vaishnav argued that Modi must more aggressively make the case to the rural poor that pro-market and pro-poor reforms are “two sides of the same coin”. He added that right now, the global economy is uniquely favorable to India’s efforts. He pointed out that oil is $30 per barrel, adding that real reform will be much harder if it rises to $100 per barrel.

Watch the broadcast on Bloomberg TV India.