Industry seeks strong steps from new government for growth
Industry chambers Friday said they expected the new government that will assume charge next week to take strong steps for fast and sustainable growth.
The chambers were upbeat as the Lok Sabha poll results showed the Narendra Modi-led Bharatiya Janata Party (BJP) set for a landslide victory in the general election.
Modi is known as a pro-business and an industry-friendly leader.
"With prudent macroeconomic management, CII expects that the economy could recover to 6.5 percent GDP growth rate in 2014-15 as against an estimated 4.9 percent in 2013-14. Continued reforms could take GDP growth rate to 8 percent level in three years," Ajay Shriram, president, Confederation of Indian Industry (CII) said.
"A clear mandate is positive for India. It is amply clear that the country, especially the youth, wants development and good governance," Sidharth Birla, president, Federation of Indian Chambers of Commerce and Industry (Ficci) said.
"Ficci hopes that this mandate will help the leadership restore much needed investor confidence, attract higher investments and generate employment, especially in the manufacturing sector," he added.
"Modi will take strong steps and implement its developmental policies across India and take India's growth-strong, fast and sustainable. His credibility for turning around Gujarat's economy and making it an attractive investment destination for industrialists both domestic and overseas are known to all," Sharad Jaipuria, president, PHD Chamber of Commerce and Industry, said.
The upbeat trend was reflected on the stock markets as well, in which sensitive index (Sensex) of Bombay Stock Exchange crossed 25,000-point mark and the Nifty of National Stock Exchange crossed the 7,400-point mark.
"The Indian industry and the global investors have hopes on Narendra Modi who has a solid track record of governance in Gujarat. We are sure with his strong, transparent and policy-driven governance, India is on way to becoming once again the much sought after destination of international investors," Assocham president Rana Kapoor said.
"The outcome of the general elections reaffirms India's vibrant and dynamic democracy and would greatly help to revive growth and investor sentiments," Shriram said.
Manufacturing sector reforms should be at the top of the agenda of the new government to enhance its growth and productivity to generate millions of employment opportunities in the economy. State-of-the-art infrastructure, hassle-free environment clearances, reforms in the labour laws, special attention to the MSMEs sector would be critical to increase the manufacturing share in gross domestic product (GDP) to 25 percent from the current level of 16 percent, Jaipuria said.
"With the stable Government now a certainty, it is anticipated that they would work towards re-igniting the Investment cycle which is critical for revival of growth in the manufacturing sector in India - combined with a stabler and non-disruptive fiscal regime, this could once again get India into focus amongst global equity and strategic investors," Sanjeev Krishan, leader - private equity, PwC India said.
(Posted on 16-05-2014)