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Election Results: Corporate India rallies behind victorious Modi, calls for more reforms

Kiran Mazumdar-Shaw, Chairperson and Managing Director, Biocon Limited said NDA 2.0 must implement and execute the five-year strategic plan envisioned during the NDA's first term

twitter-logo PB Jayakumar        Last Updated: May 23, 2019  | 21:38 IST
Election Results: Corporate India rallies behind victorious Modi, calls for more reforms

Corporate India has welcomed Narendra Modi's re-election and wants the NDA government to continue pro-business policies like Make in India and Ease of Doing Business.

"The decisive election results will propel India's growth pace to the next orbit and drive the transformation of the country," said Vikram S Kirloskar, President, Confederation of Indian Industry (CII). The industry association said a focused and comprehensive agenda for addressing corruption has delivered outstanding results in the last five years. Game-changing reforms such as the introduction of Goods and Services Tax (GST), Insolvency and Bankruptcy Code, lowering of tax rates for small enterprises, ease of doing business and so on, have created the right environment for industry to flourish.

"The continuity and stability at the centre will not only allow the government to continue with the pace of reforms set by GST, IBC and RERA, but it also brightens the chances of extending the reform mode to other critical areas like land and labour laws," said Sandip Somany, President, FICCI. He said there is an urgent need to bring investments on track and boost consumption to better GDP growth from the current around 7 per cent level, which will help in generating more jobs and taking care of rural distress.

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 a more conducive environment to attract FDI in critical segments like mining and Oil and Gas, said Anil Agarwal, Chairman, Vedanta Resources. "Given India's rich and diverse geology, it is the right time for the country to have a mining revolution. The sector has the potential to take its contribution to overall GDP from the current 2 per cent to 10 per cent, plug imports of non-essential metals and minerals, and generate millions of new jobs," he said.

Kiran Mazumdar-Shaw, Chairperson and Managing Director, Biocon Limited said NDA 2.0 must implement and execute the five-year strategic plan envisioned during the NDA's first term. "Ease of doing business was identified as a key factor to restore investor confidence and push the economic agenda. NDA 2.0 ought to measure ease of doing business by benchmarking current practices with those of the top ten countries preferred by international businesses," she said.

In a congratulatory message to Prime Minister Narendra Modi, Raja Shanmugam, president of Tirupur Exporters Association said, "We stand by your mission of Tirupur knitwear business reaching Rs one lakh crore by 2022 from the current level of Rs 50,000 crore and contribute effectively for making new India."

Ashish Shanker, Head of Investment Advisory, Motilal Oswal Private Wealth Management said the new government should focus on ease liquidity and bring down lending rates to kick start demand, tackle liquidity challenges for the NBFC sector to avoid any systemic challenges in the financial sector, clear bottlenecks especially for the manufacturing sector so it encourages foreign direct investments into India and focus on infrastructure development, execute the current policies more efficiently.

"A clear mandate to BJP by the people of India will provide continuity to policies and development agenda and I think all the unfulfilled dreams of the government will now get delivered," said Hemant Kanoria, Chairman, Srei Infrastructure Finance.

Ankur Maheshwari, CEO Equirus Wealth Management felt there will be stability from an economic point of view and this is highly positive for the markets. "There is a trade war between the US and China. Systematic Transfer Plans are a good way of reducing risk in such circumstances. In terms of segments, mid and small caps have corrected strongly over the past 12-18 months. Such companies tend to rally in a bullish phase and hence investors should have some exposure to them," he said.

"We look forward to the newly elected government's solar implementation policies and are confident that renewable energy will be a key dimension in their vision as projected in the Interim Budget," said Sunil Rathi, Director, Waaree Energies. With substantial supporting domestic trade and services, and with the focus on Public Sector Undertakings sourcing from local entities, we foresee an impetus towards growth for domestic manufacturers in the sector," he said.

"Such a strong mandate should ensure continuity of policy, undertake further structural reforms and likely boost business and consumer sentiment and in turn to revive economic growth yet again. This may lead to a medium-term up-move in the equity markets," said Rajesh Cheruvu, Chief Investment Officer of WGC Wealth.

Over the next quarters, the Indian economy should gradually recover from current lows. Benign inflation, low-interest rates and income support to small farmers will also help growth, said industry rating agency Crisil. "As consumer demand improves gradually, capacity utilisation will increase and private investments in select sectors would inch up. But a material change in the private capex cycle is unlikely this fiscal due to ongoing deleveraging," said Crisil.

Also Read: Lok Sabha Election Results 2019 LIVE: PM terms BJP's victory the biggest event in democratic world

Also Read: Election Result 2019: Why Modi 2.0 will make India a stronger military power

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