India: The Congress Party's Strategy Going Forward

Indian Prime Minister Manmohan Singh on Oct. 28 reshuffled the Cabinet of his United Progressive Alliance II government following the departure of the All India Trinamool Congress from the alliance Sept. 21. Although Indian markets and businesses have reacted positively to the news, the restructured Cabinet does not reflect the support of coalition members outside the majority party, the Indian National Congress, and it will not assuage opposition parties, which are seeking a reversal of the government's recent economic reforms.

The Indian National Congress is responding to an alarming trend whereby India's historical two-party system is declining while the formation of smaller political parties among regional and minority interests is on the rise. The growing dependence on the support of increasingly independent minority parties could have serious implications for the Congress party's ability not only to pursue its ambitious economic and infrastructure reforms but also to stay relevant on the national stage.