A Historic Mandate For Change

A Historic Mandate For Change

The 2014 Lok Sabha General Elections will go down in history as a decisive shift from coalition politics to one-party government. With the new government coming into shape following the numbers game, industry experts are now discussing what the mandate means in terms of financial and economic reforms. The agricultural sector needs favourable policies to spur investment for fertilizer industries. Irrigation systems and adequate financing schemes for our farmers would also be more than welcome.

The infrastructure and power sector is seeking to check the hike in gas prices. It also wants the development of industrial and freight corridors and the streamlining of the procedures for project clearance. It could also do with a shift towards renewable energy for a better, cleaner, greener earth.

The automobile industry aim for reduction of import taxes for components and knocked down vehicles as well as incentives for localization. It could also do with more easy clearances and mandatory safety features in cars so that Indian roads are safer. The Indian real estate wants sectoral regulators to speed up approvals and seeks better transparency through accurate electronic data storage. It also needs the government to provide more home loans so that consumers can opt for their own homes. The steel industry is looking to better infrastructure and additional restrictions on iron ore exports. Both industries could also do with faster clearance of projects.

Banking is an evergreen sector and leading bankers are recommending the dilution of government stake in public sector banks. Reduce SLR and priority sector requirement as well as permission to issue tax free bonds are critical. Gems and jewellery sector is also in need of changes. It seeks reduction in import duty on gold and doing away with the 80:20 rule for gold imports.

Perhaps the most fervent wishes are from the manufacturing industry. The Indian manufacturing industry is looking for revival to sustain exports and the economic climate. Efforts are needed in the direction of addressing infrastructure bottlenecks so that projects are cleared faster and there is competitiveness with respect fo exports.

The new government aims at pushing manufacturing through 100 smart cities for spurring production in areas that are the core advantages of the sector. Tax breaks, and reduction of red tape is needed. Business friendly policies are sorely needed.

Job growth is needed. Even the US economy has suffered job losses following the economic slowdown. Combating this requires a strong committment and a vision that translates into action. Significant improvement in governance is needed for making the Indian economy competitive.

Brand building is as badly needed as solid infrastructure and good business policies. The new government has a challenge ahead. It needs to balance development with growth. Businesses also have a resposibilty to the environment. Sustainable development can be the change we need. Building business resiliency and corporate India's brand value is critical. Infrastructure and policies to bolster development must be forthcoming. Then, change can take a positive direction. The need for better health care, more social reforms, financial development and inclusive growth are evergrowing. The new government has promised development for all. They need to fulfill this promise to the people. With a shift in leadership, changes are forthcoming. Time will tell if the Indian growth story moves to the point where India gets the change it needs.