SME Times News Bureau | 23 May, 2019
The Indian industry on Thursday congratulated the Narendra Modi-led
National Democratic Alliance (NDA) for its performance in the 2019 Lok Sabha
elections.
FICCI President Sandip Somany said continuity and stability at the
Centre would enhance chances of more economic reforms along with an
increasingly stabilising Goods and Services Tax (GST), Insolvency and
Bankruptcy Code (IBC) and the Real Estate (Regulation and Development) Act.
"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 take care of the rural
distress," Somany said.
The next government will have to quickly plan for a robust reform agenda that
would not only enhance consumer spending, but will also create conditions for
higher private sector investments and exports, he added.
ASSOCHAM President B.K. Goenka said, "A strong and stable government would
bring in more foreign investment even as the domestic firms are witnessing
renewed confidence. We are in for a virtuous cycle where consumption and
investment drive each other. With inflation expected to stay benign, and growth
set to move higher with the help of lower interest rates, we would soon be in a
sweet spot."
Mining and metals major Vedanta Resources' Chairman Anil Agarwal exuded
confidence over the Prime Minister's leadership and said that the new
government will continue with the reforms agenda.
"A strong and stable government with a fresh mandate will be well placed
to give the reforms agenda an urgent push to provide the much-needed impetus to
investor confidence especially given the current state of the world
economy," said Sunil Bharti Mittal, Chairman, Bharti Enterprises.
Ajay Singh, the Chairman of budget airline SpiceJet, also the person who coined
the phrase "Abki Baar Modi Sarkaar" said: "I extend my heartiest
congratulations to our Prime Minister Narendra Modi on his stupendous
victory."
Noting that the country's aviation sector has witnessed "remarkable
growth" in the last five years, he said: "We hope that our government
will address the structural challenges facing the sector urgently."
There were also words of caution for the upcoming government considering the
global and domestic economic situation.
Deepthi Mathew, economist at Geojit Financial Services said that the economy
currently is "much weaker" than what it was in 2014.
"Rural distress and slowing investment in the country are two major issues
that need to be addressed in an urgent manner. The developments in the global
economy are also not favourable, especially with regard to the rising crude oil
prices. The low crude oil prices benefited NDA-I in a bigger way," Mathew
said.
Sanjay Chamria, Vice Chairman and MD, Magma Fincorp said that the government's
primary move in the financial sector should be to address the lack of money
movement at banks and accelerate the flow of money in the system.