"The outcome of the General Elections reaffirms India's vibrant and dynamic democracy and would greatly help to revive growth and investor sentiments," said Ajay Shriram, President, of the Confederation of Indian Industry (CII). "The economic reforms agenda can be taken forward with a stable political dispensation and a multidimensional tool-box of policy instruments is required to kick-start growth."
He said that with prudent macroeconomic management, 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% level in three years," he added.
Although the country's GDP grew at an average of 7.9 per cent between 2004-05 and 2012-2013, when the Congress-led UPA government had been in power, growth tapered to 4.5 per cent in 2012-13, and an estimated 4.9 per cent in 2013-14, as investments dropped, the infrastructure sector came to a standstill and bureaucrats grew wary of taking crucial decisions. The industry is hoping that this gets rectified, and positive sentiments drove the stock markets, taking the Sensex to an all time intra-day high of 25,000 on Friday.
"Congratulations, Shri Modi for your remarkable rise," tweeted Anand Mahindra, Chairman of the Mahindra Group. "India's impatience to rise has put you on top. May you fulfill these great expectations."
Biocon Chairperson Kiran Mazumdar Shaw said that Modi had "outperformed all electoral forecasts, and he will outperform" as India's 14th Prime Minister. "The country is entering a golden era of change," she added.
"We congratulate the winning party and look forward to partnering with the new government," said TV Narendran, Managing Director, India and South East Asia, Tata Steel. "We look forward to clarity on policy going forward and a commitment to strong action that will help the steel and mining industry to play its part with the government in enabling India's overall all - round growth." The mining sector, especially coal, had been passing through a difficult phase, riddled by scams, environmental hurdles and slipping production.
The industry wants a CEO for the country, just as a corporate needs a leader who can deliver. "India needs a CEO as a Prime Minister that Modi represents," said Bundeep Singh Rangar, Chairman of London-based consulting firm IndusView. "Modi has captured the Indian vote by combining charisma and clearly pronounced policies and successfully tapped into an anti-incumbency sentiment."
Capital investment contributes nearly 35 per cent to India's $1.8 trillion economy, but it barely grew in the fiscal year that ended in March as delays in clearances from various ministries and funding issues grounded many major projects.
Rangar said that Indian leaders had targeted $1 trillion in infrastructure investment over five years to close gaps preventing growth in manufacturing but policies still inhibited foreign investment. Growth in Asia's third-largest economy has almost halved to below 5 per cent in the past two years on weak investment and consumer demand, the worst slowdown since the 1980s. India ranked a poor 134 out of 189 countries as a place to invest and start a business.
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