With the election results declared on Friday, suggesting the formation of a stable–pro investment-oriented government, India Inc is hopeful that the new government would instill confidence in the economy and investor community, and would initiate necessary decisive policy reforms to revive the economic growth. Betting on a Modi win, foreign investors have reportedly poured more than $16 billion into Indian stocks and bonds in the past six months and now hold over 22 per cent of Mumbai-listed equities.
The industry expects the new dispensation to remove some of the bottlenecks particularly in the infrastructure space, including regulatory approvals for large projects, clarity on investment and tax policies, etc.
Have a look at what industry leaders have to say and their expectations from the new government.
Ajay Shriram, president, the Confederation of Indian Industry (CII)
The outcome of the general elections reaffirms India’s vibrant and dynamic democracy and would greatly help revive growth and investor sentiments. We extend our full support to the new government and look forward to engaging with its leaders including Narendra Modi in the next five years. The economic reforms agenda can be taken forward with a stable political dispensation and a multidimensional tool-box of policy instruments is required to kick-start growth. With prudent macroeconomic management, CII expects that the economy could recover to 6.5% GDP growth rate in 2014-15 against an estimated 4.9% in 2013-14. Continued reforms could take GDP growth rate to 8% level in three years.
Sidharth Birla, president, FICCI
FICCI hopes that this mandate will help the leadership restore the much-needed investor confidence, attract higher investments and generate employment, especially in the manufacturing sector. The nation awaits an era of minimum government and maximum governance. Industry must be seen as a key factor in the nation’s advancement by enabling efficient provision of goods and services and creation of jobs.
Gautam S Adani, chairman, Adani Group
The country needed the government which is capable of taking politically pragmatic and economically prudent decisions and stand by them. Modi during his campaign has been emphasising on government which will be decisive and will have focus on strong governance. This will positively impact policy formulation and its implementation and in turn improve transparency. It will speed up the project implementation as well as investments. The country has will but what is needed is positive sentiments to revive investments.
GVK Reddy, founder, chairman and managing director, GVKPIL
We are confident that with a strong mandate, the new government will do well and will implement economic policies that benefit the country’s people and its industry. This will create an environment conducive for growth and ensure prosperity of the nation, fulfilling its enormous potential.
Sunil Bharti Mittal, founder and chairman, Bharti Enterprises
Empowered with such a decisive mandate, the new government is expected to undertake some bold reforms that will inject fresh momentum into the economy. The long-term India growth story is intact, and the need of the hour is to bring back business confidence and revive the investment cycle through swift and decisive policy making with focus on jobs-led inclusive growth.
C Shekar Reddy, president, The Confederation of Real Estate Developers’ Associations of India (CREDAI)
We are confident that the new government will work constructively to provide stability and take proactive measures to trigger the growth and development in the economy. We are hopeful that the new government would seize the opportunity presented by the real estate industry owing to its catalytic potential for growth and employment generation.
Dinesh Kanabar, deputy CEO, KPMG India
The key to the revival of economic growth is the renewed investment, particularly in the infrastructure space. The FDI in India took a back seat, thanks to flip-flop in economic policies, clogging up of the approval process for large projects, etc. The first task of the new government would be to deal with these three issues. We cannot have ambivalent policies in retail, an ambiguous stand on Mauritius tax treaty, a ministry which sits on large projects for environment clearance and an imposition of retrospective taxation.
Tulsi Tanti, chairman, Suzlon Group
We believe the BJP-led government will provide an environment conducive for growth and investments, with major reforms in infrastructure and renewable energy sector. This is important as India’s economic environment will act as a catalyst in reviving the global economy. I extend my best wishes to the new government.
(Edited by Joby Puthuparampil Johnson)