'Cong to now get more room to manoeuvre on economic issues'

With UPA coming back to power, India's foreign policy is unlikely to change, a prominent intelligence think-tank said on Saturday, observing that Congress' significant victory will allow it more room to manoeuvre on economic issues.

"Congress' significant election victory will allow the ruling party a bit more room to manoeuvre on economic issues, such as promoting the development of special economic zones and on foreign policy issues that highlight an Indian interest to grow its relationship with the United States since the party is unlikely to rely on the leftist parties for support," Texas-based Stratfor said.

It, however, maintained that the global financial crisis and the decentralised nature of India's political system will hamper the ability of Prime Minister Manmohan Singh, a trained economist, to implement any meaningful liberal reforms to encourage foreign investment, cut down on populist spending and manage a growing budget deficit.

Stratfor in its news analysis on Indian elections also said that the US, which is looking to enhance strategic partnership with New Delhi, will have to do a tough balancing act between India and Pakistan.