The Congress-led UPA government had actively pursued its agenda of governance from 2004 to 2009, but during its second phase, from 2009 to 2011, it seems to have lost its will to govern and has been engaged only in fire fighting. The study reveals that domestic and foreign policies of the government show its lack of direction. Explanations have been offered for the lacklustre and agendaless performance of the government. The focus is on the causes of 'crisis of governance' since 2009.