Corporate India on a high with UPA back at the helm

Reforms to put economy on path to recovery expected

 With the Congress-led UPA no more being hamstrung by the Left Parties, who are opposed to radical reforms in the economy, the Indian Inc and industry overwhelmingly felt that the new government would no more under constraint to go ahead with reform in key segments of the economy.

“The industry is happy that we have a verdict which is clear and not fractured... This will help the government take quick and decisive action,” Ficci President H P Singhania said while reacting to poll result. “We expect the new government to unleash a slew of reforms to get back to 9 per cent plus growth,” he hoped. “Pensions, insurance, banking, disinvestment in Public Sector Undertakings, labour, private participation in defence and retail are key areas crying out for reforms,” he said.

“The previous UPA government could not pursue reforms because of ideological conflict with the Left Parties. Now the new government will no more face this type of constraint. We expect acceleration on reform front,” the Ficci Chief said.

Economic imperatives

Echoing similar views CII President Venu Srinivasan said “the present economic conditions in India required an election verdict, which would provide stability at the centre. And the verdict has done just that.”

“We are looking at a five year stability, consolidation and reforms going forward…. Our expectation from the new government is that the economic imperatives are paid adequate attention to and the reform process is fast tracked, because the current situation demands it,” the CII Chief noted.

Indian Inc also feels that backed with a clear mandate the government would be in a better position to respond “swiftly and decisively” to the current economic environment impacted by the global recession. As Singhania said “we expect the government to bring back the economy to the path of at least 7 per cent growth in the next six months.”
“We will present to the government and the Prime Minister a 100-day agenda that focuses on economic recovery and a sustained growth of 9 per cent plus through a series of measures aimed at beefing up investment and fiscal measures to stimulate consumer spending,” Ficci Chief said.

The ASSOCHAM President Sajjan Jindal hoped that UPA government would continue its “progressive” social and economic agenda for inclusive growth and good corporate governance. The Indian industry currently impacted by global slowdown expects the new government to devote all its energies to implement the stimulus packages it has rolled out in the last six months. Welcoming Congress-led UPA’s return to power Indo American Chamber of Commerce (IACC) said that the nation as a whole has voted for stability, continuity, growth and progress.


VIJAY MALLYA: UB Group Chairman said the UPA government will have the freedom to pursue reforms and revive the economy without bothering about placating hotch-potch allies. It will help Manmohan Singh, an accomplished economist, to push harder for the economic revival to get back to 9 per cent growth.

NANDAN NILEKANI: Infosys Co-Chairman termed it as a decisive verdict. I think for the first time you will have a government without ideological barriers. There will be no shackle on reforms. This verdict means that they(the government)  can decide on the   agenda very quickly.