World Colleges Information

India Inc’s mood of despondency has made way to hope. At the dawn of the new year, industry leaders are looking up to the eight month-old Narendra Modi government to revive the economy. From a vocal fault finder of the previous UPA regime, the captains of industry have turned into cheerleaders for the new government. If the corporate world was crying loud about policy paralysis and slow decision-making process during the UPA rule, it has been riding high on promises of achche din (good days) made by Prime Minister Modi. India Inc’s new year wish is for these positive sentiments to turn into real action on the ground now.

Good start

The government, in the meanwhile, has unleashed a slew of reforms to attract greater investments, including higher foreign direct investment (FDI) in defence and railway infrastructure. It has relaxed labour laws and launched campaigns, like the Make In India for re-invigorating manufacturing, Clean India and Digital India, among others.It has also promulgated an Ordinance to facilitate e-auction of coal blocks for private companies for captive use and allot mines directly to State and Central public sector undertakings. Another Ordinance has facilitated increase in the FDI limit for the insurance sector to 49 per cent from the earlier 26 per cent. The government has also enabled promoters of big projects to seek online green clearances, enhanced validity of industrial licences to three years and taken a number of other steps to cut red tape, promising instead a red carpet for investors. The corporate sector is happy with the government’s initiatives, like the Shram Suvidha portal to ease labour compliance norms, re-launch of financial inclusion scheme Jan Dhan Y ojana and plans to build smart cities. It is hopeful that the next Union Budget would make progress on these and many other issues.

“A quick return to a 7 to 8 per cent economic growth trajectory in the next year is not likely. It would take at least two to three years.”

AJAY SHRIRAM
President, CII

Long wish list

Overall, the industry remains hopeful that things will be better soon and the promised good days may indeed arrive in 2015. It is allowing the new government to settled down and be in a stronger position to start delivering on its promises. Despite the bullish mood, there are some voices of concern. But they are now being voiced behind closed doors or at off-media industry meetings. Industry leaders expect the quick rollout of the much-delayed Goods and Services Tax. They want the government to expedite clearances, revive stalled projects and get the economy back on track. They hope that the new government will reopen the chapter of high economic growth in the new year.

“In the first few months, the government has set an appropriate policy direction and tone to lead India back to high growth.”
JYOTSNA SURI
President, FICCI

BUDDING MANAGERS

FEBRUARY 2015 ISSUE