India Inc Hails Decisive Mandate for Modi-led BJP, Looks for Bold Reforms

Hailing the clear mandate given by voters to the Bhartiya Janata Party-led NDA, leading lights of corporate India hoped incoming government would boost economic growth and create jobs to herald a "golden era of change".

Hinduja Group chairman Srichand Hinduja described Narendra Modi's massive mandate as a vote for stability that will put India back on the path of high growth.

"Modi has a proven track-record of governance in Gujarat and people have reposed enormous faith in his leadership," Mr Hinduja said. (Read more)

Aditya Birla Group chairman Kumar Mangalam Birla said, "This is vote for stability, progress, and good governance."

"The most important thing the new government must do is to accelerate economic growth. So, reining in of inflation, fiscal deficit and unemployment are of paramount importance as is stoking of an environment that is conducive to a revival of investor optimism," Mr Birla told PTI.

HDFC vice-chairman and managing director Keki Mistry said the decisive mandate can help usher decisive reforms in a slew of areas like taxation, subsidies, improving investor confidence and resolve black money issues among others.

"The first thing that the new government should do is to bring in tax-friendly laws. We cannot have more Vodafone-like issues. The new government must find a solution to all the Vodafone like retro-tax issues. It also should bring down the effective tax rates but improve tax compliance," Mr Mistry told PTI.

"Upgrading the country's infrastructure through investment will help boost growth rates as well as give a fillip to many industries including the IT industry, which can tap the talent available in Tier II and Tier III cities and create sustainable jobs," Tata Consultancy Services (TCS) chief executive N Chandrasekaran said.

United Breweries group chairman Vijay Mallya said in a tweet, "Finally looking forward to a strong and stable Narendra Modi led BJP Government with an absolute majority and no coalition pressures."

"Modi has outperformed all electoral forecasts n (and) he will outperform as India's 14th Prime Minister. We are now entering golden era of change," Biocon CMD Kiran Mazumdar Shaw tweeted.

The new government needs to drastically increase public spending on health, create a roadmap for universal health coverage, corporatize medical education and take decisive steps to remove the barriers of accessibility, cost and quality that continue to plague India's healthcare system, Apollo Hospitals group chairman Prathap C Reddy said.

Hero MotoCorp joint managing director Sunil Kant Munjal said there is a need for the automotive industry to continue to get support (in the form of excise duty cuts to continue) for a while because this has a big multiplier effect on the economy.

The elections have delivered a clear mandate for governance and growth, which should be leveraged for decisive action that will rebuild confidence in the economy, ICICI Bank's head, Chanda Kochhar, said.

"The immediate priorities would be to resolve issues in existing projects, clearing pending receivables to the corporate sector from government agencies, resolve the retrospective taxation issue and bring clarity around tax laws, begin the implementation of GST, and take steps to contain inflation."

The outcome of general elections reaffirms India's vibrant and dynamic democracy and would greatly help to revive growth and investor sentiments, the Confederation of Indian Industry (CII) said.

"That (FDI in multi-brand retail) is something that we feel is desirable for India. We will take it up with the government and articulate and share our views," said Ajay Shriram, president of industry body CII.

Highlighting expectations of India's auto sector, Maruti Suzuki India chairman R C Bhargava said, "I think at the moment the industry is in such shape that removing that concession (excise duty cut) would be very negative, so I hope that will continue."

"Congratulations Shri Modi, for your remarkable rise. India's impatience to rise has put you on top. May you fulfill these great expectations," a tweet by Mahindra & Mahindra CMD Anand Mahindra said.

(Read: Auto sector pins big hopes on Modi government)

"Congratulations to Mr Narendra Modi. Finally, it really is AbkiBaarModiSarkaar (sic)," Raymond Group CMD Gautam Singhania tweeted.

Fortis Healthcare executive chairman Malvinder Mohan Singh said that the clear majority will allow government take difficult but right decisions required to unleash growth and move the country and the economy into a higher orbit.

Expressing concerns on the healthcare sector, Medanta-Medicity CMD Naresh Trehan said, "My only request to Mr Modi was: please give us a decent knowlegeable health minister because so far we have been relegated to the worst, besides, at least 3 per cent (of the GDP should be spent on the healthcare sector."

Ficci president Sidharth Birla said, "We hope that this mandate will help the leadership restore much needed investor confidence, attract higher investments and generate employment, especially in the manufacturing sector."

Industry body Assocham said that a majority mandate gives hope of a stable government, paving the way for bold and decisive policy reforms.

"This, complemented by the animal spirit of Indian enterprise, can herald a 10 per cent growth of the economy in the next 18-24 months," Assocham president Rana Kapoor said.

"We are confident that with a strong mandate, the new government will do well and will implement economic policies that benefit the country's people and its industry." GVK Power & Infrastructure Ltd founder and CMD G V K Reddy said.

Terming the results as a "dawn of new hope for all Indians", Cadilla Pharmaceuticals CMD Rajiv Modi said, "We wish that the new government takes the India growth story further and works towards making the economy more vibrant."

CBRE India CMD Anshuman Magazine said implementation of infrastructure projects with a sense of urgency should be the top priority of the government.

JK Tyre & Industries chairman and managing director R P Singhania said the sharp economic slowdown in India over the last few years has seriously eroded the country's competitiveness. It is therefore imperative that investments are fast tracked, especially in the infrastructure domain.

"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," Tata Steel South East Asia managing director T V Narendran said.

Future Group chief executive Kishore Biyani said that with the NDA getting a clear majority, the new government is expected to take decisions that lead to prosperity of the nation.

"New government brings in new hope. We expect the new government to deliver (on its promises)," Mr Biyani said.

ITC chairman Y C Deveshwar said that a comprehensive and decisive mandate such as this augurs well for spearheading a new paradigm of development with social equity. Stability together with progressive policies will bring in optimism to encourage investments and spur growth.

Videocon director and Consumer Electronics and Appliances Manufacturers Association (CEAMA) president Anirudh Dhoot said the consumer durable industry looks up to the new government in framing guidelines and initiatives that will pave the way for growth, advance technology and innovation.

PHD Chamber of Commerce President Sharad 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.

The landslide victory and mandate given to Mr Modi should result in proactive and stable policy environment, exporters' body FIEO's president, M Rafeeque Ahmed, said.

"The new Government will have to bring back manufacturing on track to sustain export and economy," he said.

EEPC India Chairman Anupam Shah said, "We expect that Modi Government will be able to take some bold decisions regarding labour reforms which will ultimately benefit the Indian workforce and create new employment."

Omaxe Ltd chief executive Mohit Goel said that with the election results out and the promise of a stable government a reality, the scenario will improve for the real estate sector.

"On behalf of the Indian American community and friends of India in the US, we extend warm congratulations to Narendra Modi for leading the BJP to a spectacular victory in these historic elections in India," said Sanjay Puri, chairman of the US India Political Action Committee.

"I would expect the new government to address the issues India faces including boosting economic growth, tackling corruption and fostering inclusive development," said B R Shetty, chairman of UAE Exchange.

"The results are an indication of the prevailing sentiments in the country. All eyes are on Modi now for delivering a new India," said Rabindra Jhunjhunwala, partner with Khaitan & Co.

People's expectations from a stable government are very high and the BJP-led NDA will have to deliver on the same, JM Financial group chairman Nimesh Kampani said.

"This decisive majority verdict will enable them to take adequate steps for inclusive development with a focus on job creation. A stable macroeconomic environment will further propel the economy on to a higher growth path," he said.

Hopefully the new government will work towards the betterment of the housing sector by removing the regulatory bottlenecks in the way of project approvals and bring pending reforms such as real estate regulation, RICS South Asia managing director Sachin Sandhir said.

"As India gets set for a stable government, the first priority of the new government should be to work on measures to cut down inflation, followed by clearing stalled mega projects," Ford India's executive director of marketing, sales and service, Vinay Piparsania, said.

"The new government's economic and employment policies will be key determinants of the growth of the real estate sector in the forthcoming years," Shriram Properties managing director M Murali said.

(Read: Realty market revival expected after Modi's win)

ReNew Power Ventures founder, chairman and chief executive Sumant Sinha said the government has to cut subsidies, create fiscal room and use that expenditure to propel some of the infrastructure areas.

"As India elects a new & stable government at the Centre, we will continue to remain engaged, committed and work together with the government and other stakeholders and continue adding value to the economic growth in the country," Walmart India chief executive Krish Iyer said.

"We are committed to India and are pleased with our established and successful cash and carry business and anticipate substantially growing that business."

"As we inaugurate a new government, we look forward to development, good governance at state & central government, better economic focus thereby building India as a smart country," Spice Global chairman Bhupendra Kumar Modi said.

He was also hopeful that the BJP-led government will bring more infrastructure development, modernisation and liberalisation.

"We are expecting this new Government to work in tandem with the Developers Associations who have been from time to time making various suggestions to make the industry more transparent and capable of providing affordable housing to the masses," Supertech CMD RK Arora said.

"Creating multiple new cities with amenities, its vision for energy to generate more, use rationally and waste less augurs well for the Indian power sector," Hindustan Powerprojects chairman Ratul Puri said.