Thursday 27 October 2016

India Inc Gives Modi Govt 8/10 As Industry Welcomes Changes

New Delhi
File-PTI Photo by Manvender Vashist

In a thumbs up for the Narendra Modi-led NDA government ahead of completion of 100 days in office, most corporate leaders are finding a marked difference in style of functioning of the government with a strong focus on accountability and execution with ear-to-ground approach.

"Prime Minister Narendra Modi has earned a ranking of eight out of 10 in an India Inc survey," Assocham said quoting its survey.

As many as 78 per cent of the 357 top industry leaders surveyed in the last one week said that the NDA Government has brought in a marked change in perception about the Indian economy among the global and domestic investors as is evident from the foreign institutional investors placing India on top of the emerging markets' pack and even going overboard on Indian equities.

Moreover, 83 per cent CEOs, CMDs and CFOs agreed that India looks far better in broad economic parameters like GDP prospects, including the industrial output, services, exports, trade deficit, current account deficit.

"The key fundamentals are looking pretty strong with promise to improve further taking the economic growth to the six per cent trajectory going forward. Inflation too is inching downward, which will pave way for reduction in interest rates," Assocham President Rana Kapoor said.

However, the survey noted that a part of the industry which expected big bang announcements right from the word go did not get it right, while a realisation is dawning fast that the Modi Government has an ear to the ground showing preference for implementation rather than big bang announcements without follow-up.

"Look at the way the PM's Jan Dhan Yojana is being implemented in a mission mode with a set target to be achieved in a fixed time. The entire banking machinery has been geared towards financial inclusion. The big difference between the old scheme and this one is the approach for achieving the targets, come what may," Kapoor, who also heads Yes Bank said.

To a majority of CEOs, 74 per cent, it has become clear by now that the Modi government will move in an incremental but decisive way given the strong mandate for five years in the Lok Sabha elections.

According to industry leaders, his (Modi's) style of functioning which is rooted in getting the best out of the government machinery and on the delivery mechanism is becoming clear, giving confidence that in the next six to nine months, the economic situation will be quite different.

"Some of the legacy issues like high corporate debt, high bank NPAs, complexities in the proposed Goods and Services Tax will be resolved in a manner which will be quite convincing, consolidating the gains of economic growth," the survey said.

Some of the initiatives like reaching out to neighbours in South Asia, giving economic priorities to Asian giants like Japan, China and Singapore came in for special appreciation from the corporate leaders.

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