The election of Prime Minister Narendra Modi was met with euphoria in India, and with high expectations across the rest of the world.
Now, the question on every investor’s mind is: Can Narendra Modi do for India what he did for Gujarat? As Gujarat’s Chief Minister, Modi’s no-nonsense and pro-business leadership brought domestic and foreign direct investment and eventually brought prosperity to the common man in that state. India needs such a result-oriented prescription, now more than ever, with gross domestic product (GDP) growth stalled around 5.5% in 2013-14. Mind you, Indian GDP growth cannot derive advantage from the ‘mass outlay of US Dollar’ in the developing markets any longer, with the current decision to recoup excess dollar reserves, by the US Federal Reserve this ongoing year.
To accomplish Narendra Modi’s mandate to restore economic growth, the priorities of his able administration must be to:
– Ensure that stalled projects, particularly in the field of infrastructure, are resurrected and shovel-ready projects commissioned as early as possible.
– Create employment for India’s size-able and growing workable-age population, with almost 60% of it between the ages of 15 and 54. Results that are expected from the 3-D advantage ( democracy, demand, demographic dividend) are not yet realized!
– Liberalize policy to attract even domestic capital investment as well as foreign direct investment.
How long do we need to wait for witnessing the transformation of vision into a quantifiable reality?