The great Indian general election is finally over. Mr. Narendra Modi has been elected the next Prime Minister with a thumping majority for his party, and India is all set for a new beginning. The landslide election win by BJP could be a game-changer in the history of Indian politics. The decisive verdict will ensure greater political stability, quicker investment revival and ultimately a higher growth rate.
We believe that the BJP-led government will provide an environment conducive for growth and investments, with major reforms in the infrastructure and energy sectors. This is important as India’s economic environment will act as a catalyst in reviving the global economy. Besides good governance, development, bold policies, job creation and inclusive growth, India Inc. wants Modi to implement second-generation economic reforms through GST and DTC, revive stalled infrastructure projects and resolve the iron ore and coal mining issues.
This decisive victory is enough to give Mr. Modi a free hand to formulate industry-friendly strategies and bring the country back on a high-growth trajectory and make India an easier place to do business in. India Inc. sees faster expansion in the next few years based on Mr. Modi’s plans to attract investments and build more ports, roads and bridges. The gross domestic product (GDP) will expand at a four-year high of 6.5 per cent in the year through March 2016, compared with a previous estimate of 6.2 per cent.
While India’s structural story has been very strong, the pace of reforms has been slow in the recent years holding back the growth momentum. The new government led by Mr. Modi will improve the business sentiment, thereby lifting corporate sector profitability and incentivising a revival in private investment.
Further, Mr. Modi’s win has sparked optimism that India’s economy will lead to a rebound in the biggest emerging markets, as other BRIC countries are faced with slowing growth. With political clarity emerging, business and household confidence is also likely to rise.
Mr. Modi has always been a great supporter of the textile industry. Under his leadership as Chief Minister of the State for a decade, the textile industry has flourished in Gujarat. His government also unveiled the New Textile Policy which has been a great success by attracting record investments from all over the country.
Mr. Modi’s election victory has also strengthened the Indian rupee, which may not augur well for the textile industry, particularly for the export sector which was among the beneficiaries of a weak currency. Yet, overall economic growth and increase in domestic consumption will boost demand for textile products.
We propose to carry in our next edition the views and expectations of the textile industry leaders in the country after a detailed discussion with them on the new government’s overall industry revival plan.
As citizens of India, we feel more secure and confident that we have a government at the Centre which has absolute majority. This helps in faster decision-making, and going by Mr. Modi’s track record in Gujarat, we can only expect a brighter future for India.