What India Inc expects from Modi2

'This solid verdict would further strengthen his resolve to drive forward the economic agenda to ensure that the fruits of the economic momentum continue to reach the poor, so visible during the last five years.'

Illustration: Uttam Ghosh/Rediff.com

India Inc Thursday said BJP-led NDA's stupendous performance in Lok Sabha polls as indicated by trends is an endorsement of Prime Minister Narendra Modi's decisive leadership, asserting that NDA 2.0 must unleash bold initiatives to transform the economy.

Several corporate honchos, including Anand Mahindra, Adi Godrej, Anil Agarwal and Sunil Mittal cheered as trends pointed towards the BJP and allies returning to power with a thumping majority, saying it was the time for deep reforms entwined with India's ambition to emerge as a global superpower.

"The government will now re-ignite its reforms agenda to push growth, tackle critical issues like creating more jobs, usher in more tax-friendly laws, strengthen India's position in global trade while protecting domestic industry from dumping and create more conducive environment to attract FDI in critical segments like mining and Oil & Gas," Vedanta Resources chairman Anil Agarwal said.

Bharti Enterprises founder & chairman Sunil Bharti Mittal said the phenomenal mandate clearly underlines the nation's unambiguous confidence in Prime Minister Modi's decisive and visionary leadership.

This solid verdict would further strengthen his resolve to drive forward the economic agenda to ensure that the fruits of the economic momentum continue to reach the poor, so visible during the last five years, he added.

Mahindra Group chairman Anand Mahindra said that Modi is set to become the most powerful democratically-elected leader in the world after the thumping win.

"Size of the country (land mass+population) X Size of the Economy X Size of the election mandate = Leader's Power Quotient. By the measure of this crude formula, @narendramodi is about to become the most powerful, democratically elected leader in the world today...," Mahindra tweeted.

CII director general Chandrajit Banerjee termed the verdict as a mandate for development and said, "The election results will reinvigorate the strong and constructive government-industry partnership and dialogue for growth built by the government in its previous term..."

In a blog post, Biocon Chairperson and MD Kiran Mazumdar-Shaw said the NDA 1.0 succeeded in formulating a five-year strategic plan which has been well appreciated by the country as is evident from the poll results.

"Therefore, NDA 2.0 must focus on the implementation of this plan in order to unlock opportunities for inclusive economic growth.

“Over the next five years NDA 2.0 must introduce policies that are bold, innovative and transformational to translate the economic potential into prosperity for all," she said.

Dalmia Bharat Group managing director Puneet Dalmia said, "The results are a clear indication that the country and its people are all for progress and stability."

Terming the NDA victory as a "strong mandate for continuity", JK Organisation director Harsh Pati Singhania said, "I hope the government will redouble its efforts and continue the process of economic and social reforms and build on the strong foundations laid in its first term."

PHD Chamber of Commerce and Industry (PHDCCI) President Rajeev Talwar said the majority mandate has laid a heavy responsibility on the government to take unprecedented economic and social decisions that will transform the Indian economy from its current size of $ 2.6 trillion towards a growth rate of 8 to 10 per cent each year in the next five years.

RPG Enterprises chairman Harsh Goenka said the resounding victory of BJP reinforces voter's choice of their most able leader to lead the nation.

"Markets got off to a roaring start, reflecting the sentiment of the nation. Unfinished agendas will get continuity and time to usher in prosperity and growth, both for Bharat and India," he tweeted.

Mahindra & Mahindra Managing Director Pawan Goenka hoped that with the results in, Budget will come out very quickly, adding there is a need "to bring back government spending in a big way" as it had slowed down from the fourth quarter of the last financial year.

Assocham president B K Goenka said, "a strong and stable government would bring in more foreign investment even as domestic firms are witnessing renewed confidence.

“We are in for a virtuous cycle where consumption and investment drive each other."

Raymond Ltd CMD Gautam Hari Singhania said a decisive leadership and political stability is good for the country and a major boost for the fast-growing national economy and the victory should usher in a new era of industrial growth and policy reforms, including a significant fillip to the manufacturing sector.

Expressing similar sentiments, noted banker Uday Kotak said in a tweet, "Time for transformation of India. Time for deep reform. I dream of us as a global superpower in my lifetime. Heartiest congratulations to @narendramodi, the BJP, and the NDA."

Godrej Group chairman Adi Godrej said the new government is expected to take steps to ensure that India's gross domestic product (GDP) growth improves.

Dabur India Ltd chief financial officer Lalit Malik said the new government should focus on overall economic development and employment creation, which would go a long way in accelerating consumer demand and improving overall GDP growth.

Surendra Hiranandani, founder and director at House of Hiranandani, said a stable government at the centre will further boost the growth in the real estate sector and hoped that it would take concrete action to push investments, increase growth and generate employment.

"The decisive mandate for the new government is a welcome development, which will allow undivided attention to national priorities like boosting employment and creating more enterprises across the country," a Snapdeal spokesperson said.

Credit view on India hinges on policies of new govt: Moody's

Moody's Thursday said its credit view on India will depend on policies of the new government and expressed hope that the country would continue with its fiscal consolidation plan.

"Any credit implications of the outcome of India's general election will be determined by the policies adopted by the government in the next few years. These policies are yet to be formulated," Moody's Investors Service VP Sovereign Risk Group William Foster said.

Moody's expects the broad push towards fiscal consolidation to remain, although with greater policy emphasis on supporting low incomes, Foster added.

As per the trend, BJP-led NDA will form the government at the Centre for the second successive term with absolute majority.

In 2017, the US-based rating agency upped India's rating to 'Baa2' from 'Baa3', changing outlook to 'stable' from 'positive', and said reforms would help stabilise rising levels of debt.

Deviating from the fiscal consolidation path as per the Fiscal Responsibility and Budget Management (FRBM) Act, the government in February's interim budget pegged the fiscal deficit for 2019-20 at 3.4 per cent of GDP, as against the original target of 3.1 per cent.

In 2018-19, the fiscal deficit was 3.4 per cent of GDP.