|
|
25th June 2013 |
Potential for changeShiv Puri
|
|
|
- There is potential for a favorable outcome to the next general elections likely in May 2014 if not earlier. (In the past, markets have jumped 20%-30% in a week when the elections results are favorable to growth) The prime ministerial candidate from the current opposition party (BJP) is Mr Narendra Modi, whose track record in India in promoting capitalist policies, eliminating bureaucracy and focusing on growth is unparalleled.
- Gujarat’s GDP has been growing at >10% per year, while the country’s GDP has slowed down to 5% per year. The state has attracted over $100 billion in investments over the last decade, multiples of any other state.
|
|
There is potential for a favorable outcome to the next general elections likely in May 2014 if not earlier. (In the past, markets have jumped 20%-30% in a week when the elections results are favorable to growth) The prime ministerial candidate from the current opposition party (BJP) is Mr Narendra Modi, whose track record in India in promoting capitalist policies, eliminating bureaucracy and focusing on growth is unparalleled. He has been the Chief Minister of Gujarat for the last 15 years – a record, as no incumbent has ever been elected for three consecutive times. During this time frame, Gujarat has become one of the most industrially developed and business friendly states in India. Gujarat’s GDP has been growing at >10% per year, while the country’s GDP has slowed down to 5% per year. The state has attracted over $100 billion in investments over the last decade, multiples of any other state. It is the default location for any industrialist to set up a manufacturing unit or an infrastructure project.
Two years ago, Mr Modi was instrumental in clearing Tata Motor’s car manufacturing investment in Gujarat in 24 hours after another state could not make a decision for over 12 months. This particular plant got up and running in a record 16 months. That is what India needs today! The infrastructure in the state in terms of road, power availability or the financial health of its power distribution companies is generally regarded as best in the country. It is a showcase of what Indian entrepreneurs are capable of doing, if supported by sensible policies and regulations.
|
|
Disclaimer: This material contains the opinions of the individual and such opinions are subject to change without notice The information contained on this website is provided for information purposes only and does not constitute or form part of and should not be construed as an offer to sell or an invitation to subscribe or any invitation to offer to buy or subscribe for any securities. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.
|
|
