India Inc hails mandate; says tough calls needed for eco revival
Welcoming the landslide victory of BJP in Lok Sabha elections, India Inc today said the clear mandate is positive for India as government could take the "tough decisions" that are urgently needed to revive economic growth.
Markets gave a thumbs up to the outcome of elections with benchmark index of Bombay Stock Exchange (BSE) rising by 216.14 points to end at 24,121.74.
The Nifty of National Stock Exchange (NSE) advanced by 79.85 points to 7,203.00 points.
FICCI President Sidharth Birla said the chamber hopes that this clear mandate will help the leadership restore 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," he added.
Industry body CII said with a decisive mandate, the new government could take the tough decisions that are urgently needed to revive economic growth.
CII Director General Chandrajit Banerjee said the first priority of the government should be to get the cleared projects operational.
"This is the quickest way to revive investment demand," he said.
Mr Banerjee said the chamber also expects the government to give urgent attention to issues arising out of the land acquisition act and the new companies act.
A strong reform package is needed at this stage, Mr Banerjee said, to generate the 150 million new jobs that India needs over the next ten years.
"Industry expects a fresh view and innovative new ideas to come up as the new government takes over," he said.
CII President Ajay Shriram said the outcome of the General Elections reaffirms India's vibrant and dynamic democracy and would greatly help to revive growth and investor sentiments.
He said the chamber has worked closely with NDA in its previous term in Government as well as at the state governments.
The economic reforms agenda, he said, 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 per cent GDP growth rate in 2014-15 as against an estimated 4.9 per cent in 2013-14. Continued reforms could take GDP growth rate to 8 per cent level in three years," he said.
The Confederation of All India Traders (CAIT), apex body of the business community of the country, hailed the victory trend of BJP-led NDA and termed it as a "positive change" for the country which will culminate into "betterment of trade and commerce" in India.
CAIT national president B C Bhartia said the traders' body hopes that the new Government will keep retail trade on its priority and awaited reforms will be initiated to give economy a boost.
Mr Sharad Jaipuria, President, PHD Chamber of Commerce & Industry, said, "Mr Narendra Modi is a great visionary and thought leader and well known for his astute administrative skills, ramrod straight integrity, a humble politician and a common man's friend."
He said Mr Modi will take strong steps and implement its developmental policies across India and make 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," he said.
Mr Jaipuria 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 GDP to 25 per cent from the current level of 16 per cent," said Mr Jaipuria.
(Posted on 16-05-2014)