India Inc hails Modi 2.0 cabinet, expects swift reforms

Last Updated: Fri, May 31, 2019 13:11 hrs
Modi

New Delhi: India Inc on Thursday welcomed the new term and team of Prime Minister Narendra Modi and hoped that it would be able to give new impetus to the economy, which is facing slowdown in several sectors.

The impetus is expected from the new government's spending plans and the ability to take bold reforms.

B.K. Goenka, President of Assocham, said India under Prime Minister Modi was slated to undertake the next stage of reforms for becoming a global economic powerhouse.

"As would be clear from the first 100-day agenda of the new government, to which Assocham commits to contribute extensively, Modi would lead the nation in all critical areas... health, education, enhancing financial inclusion, infrastructure, agriculture reforms and strengthening the industrial landscape," Goenka said.

Anil Agarwal, Executive Chairman of Vedanta Resources, said "As the Modi government embarks on its second term, I am confident that PM Modi will take series of measures to boost economic growth, make environment more conducive for attracting FDI, including in mining, raise spending on social sector schemes and eliminate poverty."

"Vedanta is bullish on India's long-term growth prospects and remains committed to making sizeable investments in the coming areas across it's various businesses and partnering India's growth story," Agarwal said.

According to Sanjiv Puri, Chairman and Managing Director of ITC, "His visionary leadership, with a clarion call to address "national ambitions, regional aspirations" will accelerate all round socio-economic development with sectors like agriculture and food processing receiving larger impetus, leading to farmer empowerment and generation of large scale sustainable livelihood."

"Empowered with a huge mandate, it is expected that the government would be able to undertake some landmark reforms in key areas, like taxation, labour and land," Goenka said.

Besides new reforms, he hoped some of the path-breaking measures like the GST and the Insolvency and Bankruptcy Code (IBC) will get a further push.

Earlier at the pre-budget consultations, CII President Vikram Kirloskar had said, "Employment creation needs a strategic boost, including from the lens of revenue generation."

In a pre-budget 2019-20 memorandum to the ministry, Ficci has warned of long-term repercussions if the serious concerns on the economy are not addressed urgently.

"Indian economy faces the risk of slow growth amid a weakening global economic environment and slowdown in domestic demand. Amid the rising uncertainties and economic challenges on both domestic and global fronts, there is an urgent need to re-energise the engines of growth and pump prime the economy," the Ficci had said.

Assocham president also pointed out that a strong and stable government would also empower the Reserve Bank of India (RBI) to go in for significant cut in the lending rates, "while the private sector investment would pick up pace sooner than later".

Goenka added even before Modi's swearing-in, some of the global headwinds like crude oil prices, "have started turning into tailwinds".

"With his global image, personal equation with global leaders and leadership of global initiatives, Modi is also expected to turn the US-China trade issues in favour of the Indian economy. India Inc would fully support this endeavour to attract foreign direct investment (FDI) and strengthen trade ties both with the US and China," Goenka said.

According to a latest update, the portfolios for the newly sworn-in ministers has been announced. Former Defence Minister Nirmala Sitharaman has been given the Finance portfolio.