Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Will Narendra Modi be able to meet expectations?  Join our daily free Newsletter

MENAFN - Khaleej Times - 21/05/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) The prime minister-elect has stoked the expectations by saying he could make the 21st century ?india?s century? within 10 years.

daunting political and fiscal traps lie in wait that could ensnare new centre-right leader narendra modi as he embarks on the gargantuan task of fulfilling india’s undoubted economic potential observers say.

the landslide election win by modi’s hindu nationalist bharatiya janata party (bjp) could be a game-changer they say but any economic transformation will take time in the emerging-market giant of 1.25 billion people where competing interests abound.

“expectations have built up very quickly too quickly” sidharth birla president of the federation of indian chambers of commerce and industry (ficci).

mumbai’s headline share index extended a heady rally on tuesday to a new closing high and one of india’s top investors rakesh jhunjhunwala forecasts the “mother of all bull runs”.

the prime minister-elect has stoked the expectations by saying he could make the 21st century “india’s century” within 10 years.

but modi “will need to exercise reality management” to temper investor and voter hopes birla said as the 63-year-old finalises his ministerial team before taking office on monday.

the bjp ousted the left-leaning congress riding a tide of public anger over tepid growth high inflation rampant graft and a sclerotic political system.

modi oversaw double-digit annual growth in a dozen years as chief minister of gujarat state and campaigned for national leader on his “modinomics” mantra of “less government more governance” pledging to spread his economic model nationwide.

top of a 12-point business wish list issued by the ficci is a call to sweep away the remainders of the so-called “licence raj”.

that refers to bureaucratic controls dating from british colonial rule that have stalled multi-billion-dollar projects as well as small investors wishing to start up businesses.

analysts say india is also in dire need of more roads ports and other infrastructure to boost productivity if it hopes to emulate rival china’s economic miracle along with a simplified tax system and reform of a cumbersome land acquisition process for industrial projects.

in gujarat modi centralised control and gained a reputation for browbeating india’s notoriously slow bureaucrats.

he was known as a tough taskmaster and reports say his office has already begun sounding out chief secretaries in various ministries asking them why stalled infrastructure or industrial projects have been held up.

but the challenge is greater on the national stage where high consumer inflation as kept interest rates elevated discouraging consumer spending and investment.

meanwhile a hefty fiscal deficit means the new bjp administration has no fiscal firepower to spur an economy growing at 4.9 per cent — half the level notched up as recently as 2011.

serious structural economic problems complete modi’s difficult hand as highlighted in a new world bank “ease of doing business” survey that ranked india at a lowly 134th among 185 nations below its brics peers brazil russia china and south africa.

“we have got to change how india is perceived” said birla citing years of project clearance delays graft and red tape which have tarnished india as an investment destination.

an average infrastructure project for instance needs approval from around 20 federal ministries. a convenience stores needs close to 30 licences to sell milk bread and other goods the retailers association of india says.

“the lowest-hanging fruits (to improve the investment environment) are fast-tracking of projects in the pipeline” said roopa kudva managing director of rating agency crisil.

but even with the bjp’s lower house majority “the government won’t have everything its way since power is dispersed in india” said capital economics analyst mark williams.

many reforms such as introducing the wish-list proposal of a simplified national tax require state approval under the nation’s federal system williams noted.

the bjp and its allies control only eight of the 29 state governments. congress remains in control of the upper house of parliament which must sanction legislation.

business leaders would also like india to relax strict hire-and-fire labour laws they say discourage industry from creating jobs for its youthful population but this is not on the “to-do” list as easing job protection is seen as unpopular with voters.

nervousness about jobs is also a reason the bjp says it will not allow foreign supermarkets into the lucrative retail market dominated by small convenience stores — overturning a congress government policy.

meanwhile modi showed no sign on tuesday of departing from some of the populist policies of the previous congress government emphasising how his administration aimed to serve india’s hundreds of millions of poor.

“to meet their aspirations and hopes this is our responsibility because our weakest poorest have sent us here” he said breaking down briefly in a rare display of emotion as he faces up to fulfilling the sky-high expectations of the world’s biggest electorate.

for more news from khaleej times follow us on facebook at facebook.com/khaleejtimes and on twitter at ?khaleejtimes

follow ?khaleejtimes -->


 


Khaleej Times




  MENA News Headlines
 May 3 2016 - Sale of vacation properties to grow by 40 pct in EgyptMENAFN
(MENAFN) The sale of vacation properties will increase between 30-40 percent this year owing to increased demand from Egyptians and Arabs.Moreover, the reduction of the Egyptian pound against the ...

 May 3 2016 - Jordan's JBA discusses trade ties with TunisiaMENAFN
(MENAFN) Jordanian Businessmen Association (JBA) announced that the Tunisian government vowed to ease the flow of Jordanian exports into the market of N. African country.Accordingly, Tunisian Trade ...

 May 3 2016 - UAE-Majid Al Futtaim to invest USD 1.33bn in OmanMENAFN
(MENAFN) UAE's based retail and leisure developer Majid Al Futtaim proclaimed that it would make 42,000 new job chances in Oman as part of an investment of USD 1.3bn.Additionally, the conglomerate ...

 May 3 2016 - Saudi aviation covers 60 percent of local marketMENAFN
(MENAFN) Saudi Arabia's private aviation sector is considered the GCC's main aviation market, with 500 private aviation aircraft and covers 60 percent share of the region.Moreover, a program was made ...

 May 3 2016 - Jordan's JPRC increases capital to USD 140.69mnMENAFN
(MENAFN) The Jordan Petroleum Refinery Co. (JPRC) proclaimed its board of directors' recommendation to grow the firm's capital by 33 percent to USD 140.69mn.Furthermore, the growth was covered ...

 May 3 2016 - Perceived corruption worsens in Arab states: TransparencyThe Peninsula
(MENAFN - The Peninsula) A billboard in one of the African nations. Berlin: Ordinary people feel that corruption has worsened in nine Arab countries and territories over the last year ...

 May 3 2016 - Woo's 'Inside Men' a smashing political revenge thrillerArab Times
(MENAFN - Arab Times) In "Inside Men", a smashing political revenge thriller with more double-crossings than "Infernal Affairs," a prosecutor allies himself with a gangster to topple the corrupt ...

 May 3 2016 - Sheikh Zayed Book Award honors winnersArab Times
(MENAFN - Arab Times) The Sheikh Zayed Book Awards held Sunday a ceremony for winners of this year on the sidelines of the Abu Dhabi International Book Fair (IBF).Addressing the ceremony, Dr Ali bin ...

 May 3 2016 - Al-Qadsiya karate team win Championship CupArab Times
(MENAFN - Arab Times) Al-Qadsiya Karate Team won the Championship Cup for public group during the 2015/2016 sports session with 18 points, while Al-Shabab Team took the second spot with 15 points and ...

 May 3 2016 - Credit growth steady as deposits reboundArab Times
(MENAFN - Arab Times) Credit growth saw a relatively moderate gain in February, though growth slipped to 7.5%. Total credit was up by KD 83 million during the month. Most of the gains were in ...

 May 3 2016 - KSE swings 30.94 pts lower volume shrinksArab Times
(MENAFN - Arab Times) Kuwait stocks swung lower on Monday after eking modest gains in the last session. The price index slid 30.94 points to 5,372.49 pts amid selling in select counters. The market ...

 May 3 2016 - NBK leads Kuwaiti banks with largest ATM networkArab Times
(MENAFN - Arab Times) National Bank of Kuwait (NBK) enjoys the largest ATM network in Kuwait with more than 260 ATMs that provide withdrawals and accept deposits to provide its customers with the ...

 May 3 2016 - Yemen talks suspendedArab Times
(MENAFN - Arab Times) Yemen's government temporarily suspended Sunday its participation in talks with Iran-backed rebels in protest at their takeover of a military base and continued ceasefi re ...

 May 3 2016 - Bombings kill 31 as Baghdad grapples with political crisisArab Times
(MENAFN - Arab Times) Two car bombs in the southern Iraqi city of Samawah on Sunday killed 31 people and wounded dozens, the latest in a series of large attacks claimed by the Islamic State group as ...

 May 3 2016 - Islamist group Shebab kills 16 Somali troops, retakes townArab Times
(MENAFN - Arab Times) Al Shebab insurgents killed 16 Somali soldiers and retook a town northeast of the capital Mogadishu on Sunday, just one day after it had fallen to government forces, the ...

 May 3 2016 - Qatar's Barwa exposes USD 4.12bn investment plansMENAFN
(MENAFN) Barwa Real Estate Co. proclaimed that it would invest more than USD 4.12bn in many projects, including on building up 12,000 housing units.Moreover, the huge funds will be invested in a ...

 May 3 2016 - Kuwait- Smart card to allow citizens, expats travel in GCC nationsArab Times
(MENAFN - Arab Times) Assistant Undersecretary for Citizenship and Passport Affairs in the Interior Ministry Major General Sheikh Mazen Al-Jarrah has unveiled a plan to allow citizens and expatriates ...

 May 3 2016 - Quitters must pay on contract, noticeArab Times
(MENAFN - Arab Times) The latest statistics released by the Public Authority for Civil Information (PACI) revealed that 132,646 people in Kuwait cannot read and write while 925,518 just know how to ...

 May 3 2016 - Kuwait- Civil freedoms minefield for austerity driveArab Times
(MENAFN - Arab Times) A three-day strike by oil workers in Kuwait last month over pay reforms shows the government faces considerable opposition as it prepares to push through painful and ...

 May 3 2016 - Qatar, UAE plan to increase investment tiesMENAFN
(MENAFN) Qatar and UAE proclaimed a strategy to create a committee that will explore investment chances in the two countries and in the region.Additionally, the committee will consist of six-member ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help