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Indian Prime Minister Narendra Modi enjoyed a landslide electoral victory in May, but building economic gloom is already casting a shadow over his government's second term. (Photo by Kosaku Mimura)
The Big Story

Modi seeks reforms to India's stuttering economy

Landslide victory gives reelected prime minister a second chance at 'Modinomics'

KEN KOYANAGI, Editor-at-large, Nikkei Asian Review | India

MUMBAI -- On a night in early August, as a monsoon roared outside, a group of around 100 small business owners gathered at the banquet hall of a hotel in a Mumbai suburb. Some have been in business for decades, but still employ only a few dozen full-time staff -- the consequence, they said, of strict labor laws and union protections that have hampered their ability to grow.

"Having direct employees means a lot of regulatory requirements," said the owner of a heavy machinery manufacturer, which employs 12 people. "You lose the flexibility to control your costs because of tough restrictions on layoffs."

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