Wednesday 17 September 2014

100 Days of Government: Systemic Changes Visible

The election of a new Government under Shri Narendra Modi was met with renewed interest by the investor and business community. The people of India had elected this Government with a sense of hope and 100 days result is encouraging. Cynics might say 100 day is too short a timeframe but the systemic changes that the new Government is trying to bring about are clearly visible in the way decisions are being taken and the shape the country will assume in the near future.

Until recently, growth decelerated, buyers stayed away from the market and investment slowed. The policy reforms spelled out in the Budget like relaxation in FDI norms for real estate, huge investment in infrastructure, smart cities, bullet trains etc and moves outside the Budget like Jan dhan yojna etc. are correct moves. Good trade relations with neighbours is what the Government intends to maintain and the successful visit of Shri Modi to Japan seeking close to $35 billion investment goes to show the swiftness and positivity with which other countries have reacted to Modi’s vision and decisive approach to governance. Some bold decisions to allow 100 per cent FDI in railways and raising the cap of FDI from 26 per cent 49 per cent in defence and insurance are surely praiseworthy and will show results soon. REITs is yet another good move. Promotion of industrial development and growth of manufacturing sector by government will give a boost to Tier II and III cities, which in turn will lead to improvement in urban infrastructure and create more avenues for employment, income and lifestyle improvement.
- Mr Mohit Goel, CEO Omaxe

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