Posts tagged ‘Modi’

06/06/2014

Modi’s Big Chance to Fix India – Businessweek

After five weeks of staggered voting, more than 550 million ballots cast, and almost $5 billion spent, the world’s largest democracy finally has a new leader. Yet the question that has loomed over India’s long campaign remains: What kind of leader is Narendra Modi going to be?

Narendra Modi speaks to supporters in Vadodara, India, on May 16

Modi fought an impressive campaign focused mostly on the right issues. He successfully cast the election as a referendum on who could better deliver jobs, government services, and economic growth: himself or Rahul Gandhi, the ruling Congress party’s heir apparent. The landslide victory of Modi and his Bharatiya Janata Party—the biggest for any party since 1984—testifies to Indians’ hunger for decisiveness and efficiency after years of policy drift and corruption scandals.

Yet voters have little idea how Modi will govern. He has given no sign of how far he’ll challenge his own supporters on economic and social policies. Investors expecting miracles are in for a letdown, because India’s political system is bound to intervene. According to JPMorgan Chase (JPM), about 70 percent to 80 percent of regulatory and other roadblocks impeding big industrial projects aren’t within Modi’s power to remove. Even so, he needs to make progress where he can.

via Modi’s Big Chance to Fix India – Businessweek.

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24/05/2014

Modi’s Big Chance to Fix India – Businessweek

After five weeks of staggered voting, more than 550 million ballots cast, and almost $5 billion spent, the world’s largest democracy finally has a new leader. Yet the question that has loomed over India’s long campaign remains: What kind of leader is Narendra Modi going to be?

Narendra Modi speaks to supporters in Vadodara, India, on May 16

Modi fought an impressive campaign focused mostly on the right issues. He successfully cast the election as a referendum on who could better deliver jobs, government services, and economic growth: himself or Rahul Gandhi, the ruling Congress party’s heir apparent. The landslide victory of Modi and his Bharatiya Janata Party—the biggest for any party since 1984—testifies to Indians’ hunger for decisiveness and efficiency after years of policy drift and corruption scandals.

Yet voters have little idea how Modi will govern. He has given no sign of how far he’ll challenge his own supporters on economic and social policies. Investors expecting miracles are in for a letdown, because India’s political system is bound to intervene. According to JPMorgan Chase (JPM), about 70 percent to 80 percent of regulatory and other roadblocks impeding big industrial projects aren’t within Modi’s power to remove. Even so, he needs to make progress where he can.

A good place to start would be to keep an election promise to introduce a combined goods and services tax—something Modi’s own party has long opposed, because it would force revenue losses on state governments. (Modi could offset some of the losses using central revenues.) He should move to phase out petroleum subsidies. He should give state and local governments greater flexibility in regulating labor markets, land sales, and more. Economic competition among the states is key.

Above all, India’s new leader must also reach out to the country’s Muslims—assuring them that he recognizes they are full and valued citizens entitled to an equal measure of security, trust, and respect. Modi’s campaign was based in part on a simple point: India can no longer afford to muddle through, endlessly avoiding difficult decisions. Now it’s time to deliver.

via Modi’s Big Chance to Fix India – Businessweek.

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23/05/2014

Will New Delhi Be Able to Translate Modi’s Gujarati Guidelines? – India Real Time – WSJ

As India waits for prime minister-designate Narendra Modi to take charge in New Delhi, many are wondering whether he can reproduce the policies that powered growth in his home state of Gujarat.

While the western state has long been one the richer states in the country thanks to a populace packed with entrepreneurs, it prospered even more than usual under Mr. Modi’s rule as chief minister for more than a decade.

Companies say with his leadership the state has cut corruption and restrictions on doing business. Meanwhile its networks of roads, ports and power plants are among the best in India and have even convinced some companies to move operations from other states to Mr. Modi’s vibrant Gujarat.

“He is a very good administrator and he will try to replicate the same model he had in Gujarat at the national level,” said Gautam Singh, an economist at Spark Capital.

The source of power behind Mr. Modi’s magic is debatable but most agree it comes from his ability to simplify government and set deadlines as well as his facility to push through unpopular policies.

Like he did in Gujarat, he is expected to streamline the number of departments and different ministries to make his entourage of key policymakers more nimble and powerful. In New Delhi, Mr. Modi will likely combine related ministries such as coal, renewable energy and petroleum for better policy implementation, said Mr. Singh.

One of the biggest successes of Mr. Modi was in energy, which has made Gujarat one of the few states in India with a power surplus.

Across India, power companies are often forced to give away power and depend on massive state subsidies. They are also hurt by theft during transmission and distribution. With little incentive or money to expand, the power generating and distributing companies have failed to keep up with demand. The resulting frequent power interruptions force other companies to set up their own expensive, captive power-generating units.

Gujarat has been able to cut power subsidies where many states haven’t been able to muster the political will to do so. It separated the power supply lines for households and farmers, helping target power subsidies. This meant non-agricultural users had to pay higher tariffs but they received a more reliable power supply.

While Mr. Modi was in charge, Gujarat took steps to ease India’s ridiculously restrictive labor laws which make it difficult for larger companies to hire and fire people as they please. Gujarat used its own version of special economic zones to promote industry. In these zones companies were given more freedom to adjust their workforces depending on demand.

One Goldman study suggests that if a similar easing were to be applied across India, 40 million jobs would be created in the next ten years.

Land acquisition is another perennial problem for companies as well as local governments as they look for spots to build facilities and infrastructure. While businesses wanting to set up operations in most states have to go through tedious procedures to get land, Gujarat has been able to significantly cut down on the red-tape by building a huge land bank that was earmarked for setting up industrial units. A recent study by Accenture to identify best practices in different states showed Gujarat’s policies were indeed helping. It now takes just 45 days for applicants to get possession of land in the state, the study showed.

via Will New Delhi Be Able to Translate Modi’s Gujarati Guidelines? – India Real Time – WSJ.

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17/05/2014

India’s Modi gets hero’s welcome as he brings new era to New Delhi | Reuters

Hundreds of Indians thronged the leafy streets of New Delhi on Saturday to greet Narendra Modi‘s triumphant march into the capital after he decimated the Nehru-Gandhi dynasty and the ruling Congress party in the biggest election victory the country has seen in 30 years.

Hindu nationalist Narendra Modi, the prime ministerial candidate for India's Bharatiya Janata Party (BJP), gestures towards his supporters from his car during a road show upon his arrival at the airport in New Delhi May 17, 2014. REUTERS/Adnan Abidi

Modi leaned far out of his car, waving a victory sign to jubilant supporters, in a drive from the airport to the headquarters of his Bharatiya Janata Party (BJP) in the center of town.

A Hindu nationalist who critics fear will be divisive and autocratic, Modi toned down religious issues in his pitch to India’s 815 million voters and won the world’s biggest ever election with promises of economic development for all.

The three-times chief minister of the western state of Gujarat is an outsider to Delhi’s power circle. The low-caste son of a tea stall-owner, his rise to power signals the end of an era dominated by the descendants of India’s first prime minister, independence hero Jawaharlal Nehru.

“Four to five generations have been wasted since 1952, this victory has been achieved after that,” Modi said, in a jibe at the Nehru-Gandhi family and the Congress it dominates.

Describing himself as a “worker”, he hailed grass-roots campaigners who showered him with pink rose petals as he arrived at party headquarters. There he met other party leaders and was expected to start discussions about forming a cabinet. Modi will not formally take office until after Tuesday, the party said.

Modi has given India its first parliamentary majority after 25 years of coalition governments, with his party winning more than six times the seats garnered by Congress.

With almost all 543 seats declared by Saturday morning, Modi’s BJP looked set to win 282 seats, 10 more than the majority required to rule. With its allied parties, it was heading for a comfortable tally of around 337 – the clearest result since the 1984 assassination of prime minister Indira Gandhi propelled her son Rajiv to office.

During the campaign Modi was explicit about wanting to end the dominance of the Nehru-Gandhi family on Indian politics. He may have achieved the goal, with Congress reduced to just 44 seats, less than half of its previous worst showing.

Modi’s landslide win gives him ample room to advance reforms started 23 years ago by current Prime Minister Manmohan Singh but which have stalled in recent years.

Despite his party’s pasting, 81-year-old Singh was magnanimous in his final address to the nation on Saturday, wishing the incoming government success. Later, he tendered his resignation.

“I am confident about the future of India,” he said in his televised message. “I firmly believe that the emergence of India as a major powerhouse of the evolving global economy is an idea whose time has come.”

Unlike Singh and his predecessors, Modi will not have to deal with unruly partners to implement reform. That could usher in profound economic changes, with some supporters imagining him as India’s answer to former British leader Margaret Thatcher.

via India’s Modi gets hero’s welcome as he brings new era to New Delhi | Reuters.

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08/05/2014

Four Reasons Why Narendra Modi Makes Some Indians Nervous – Businessweek

The question always comes up in New Delhi these days, somewhere between polite introductions and drinks: What would the reign of Narendra Modi, who seems increasingly likely to be the next prime minister, mean for India?

BJP candidate Narendra Modi addresses an election rally on April 10 at Gopal Maidan in Jamshedpur, India

One man, pro-business and a glass of whiskey in hand at the club, told me recently that Modi and his Hindu nationalist Bharatiya Janata Party (BJP) will bring needed centralization to a government that at times seems unable to impose its writ. Another—a highly educated liberal in socks, slacks, and polo shirt on the sofa just before lunch—wondered aloud whether the nation is forsaking its secular mooring for a dangerous populist.

Prediction in politics, especially in a nation as large and complex as India, is bound to be wrong much of the time. But public remarks by BJP officials and conservative Hindus apparently taking note of political winds are worth considering. (To be sure, there have been sharp words from both sides. For example, video surfaced of a candidate from the ruling Congress Party saying that he would “chop” Modi into tiny pieces.) Beneath the back and forth of explanation and disavowal, the consistency and vehemence of the messaging suggest an approach that, in a nation with a history of sectarian bloodshed, has some worried:

1. A conservative Hindu politician told a crowd that there are ways to discourage Muslims from purchasing property in Hindu neighborhoods. According to one account, Pravin Togadia allegedly met with protestors outside a home owned by a Muslim businessman and gave the occupant 48 hours to vacate the house. Togadia advised his audience to use stones, tires, and tomatoes, according to the Times of India. Togadia disputed that version of events and claimed through an online post that he was only offering advice on using the legal and governmental channels “if they felt that they are being forced into any selling of their houses.” (The newspaper subsequently said it has video confirming the initial report.)

The anecdote takes on broader significance for two reasons: The incident occurred in the western state of Gujarat, where some 1,000 people, mostly Muslim, were killed in brutal riots that included death-by-sword in 2002. The chief minister of Gujarat at the time of that bloodshed, as is still the case, was Narendra Modi. But as ever in Indian politics, there are caveats: A Supreme Court-appointed panel found no evidence that Modi’s decisions prevented the 2002 riot victims from receiving help. While Modi and Togadia have a shared background in Hindu nationalist politics, the two men do not now get along well.

2. A BJP parliament candidate informed a rally that those who do not support Modi will soon have no place in India. With senior BJP leadership standing by, Giriraj Singh said that Pakistan, the Muslim nation to the west, is where such people belong. BJP officials were quick to publicly express displeasure with Singh’s remarks, but he did not back down: “I stand by my statement that those trying their best to stop Modi from coming to power have no place in India and should go to Pakistan.”

3. A senior Modi aide was accused of telling voters they could get revenge by voting for Modi. Amit Shah was speaking in a north India district earlier this month near the site of riots last year that included murder and reports of gang rape. One account described how a “crowd of Hindu men came brandishing guns, swords and machetes, shouting that Muslims should go either to Pakistan or Kabristan (graveyard).”

4. Modi has signaled his desire to distance his campaign from militant sentiment and focus on shared national goals. As he tweeted on Tuesday:

I disapprove any such irresponsible statement & appeal to those making them to kindly refrain from doing so.

Petty statements by those claiming to be BJP’s well wishers are deviating the campaign from the issues of development & good governance.

However, many still point to his remarks during an interview with Reuters last year about the 2002 riots:

“Another thing, any person if we are driving a car, we are a driver, and someone else is driving a car and we’re sitting behind, even then if a puppy comes under the wheel, will it be painful or not? Of course it is. If I’m a chief minister or not, I’m a human being. If something bad happens anywhere, it is natural to be sad.”

There was an expression of sadness in those words. And there was, too, the unavoidable fact that he’d compared the dead to dogs.

via Four Reasons Why Narendra Modi Makes Some Indians Nervous – Businessweek.

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24/04/2014

Mumbai Shop Owners: Cut Taxes and Tame Corruption, Please – India Real Time – WSJ

As Mumbai’s traders hit the polls Thursday, many said they voted in favor of lower taxes and against corruption. High income and sales tax, import duty and rising prices have made it tougher to do business, many shop owners said.

Chetan Pishtoi at his plywood store, Sagar Ply, in South Mumbai. Shanoor Seervai/The Wall Street Journal

“In the past, I voted for the Congress,” says Chetan Pishtoi, a plywood-shop owner at Colaba market in South Mumbai, referring to the political party that currently leads India’s national government. “But now my eyes have opened. I see what [Narendra] Modi has done in Gujarat. If he wins, maybe he will do the same for India,” says Mr. Pishtoi, 30 years old.

Mr. Modi, the prime ministerial candidate of the rival Bharatiya Janata Party, is campaigning on the economic strength of the western state of Gujarat, where he is chief minister.

Mr. Pishtoi says food prices rose so much in recent years that he had to give his employees raises. “The public in Mumbai are sleeping hungry and the government hasn’t done anything about it,” Mr. Pishtoi says. Tomatoes and onions, he says, are priced beyond the reach of many.

Raju Lalwani at his men’s clothing store in Mumbai. Shanoor Seervai/The Wall Street Journal

Raju Lalwani, who runs a men’s clothes store, is also concerned about inflation. “Cloth has become so expensive, and even the tailors charge too much for stitching,” Mr. Lalwani says. “If the political party changes, maybe business will improve.”

His shop, Lovely Silk Stores, has been a family-run business for three generations. But the 58-year-old says his children won’t inherit the business. His son is studying to be an accountant, and his daughter is in grade 12.

via Mumbai Shop Owners: Cut Taxes and Tame Corruption, Please – India Real Time – WSJ.

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11/04/2014

India Under Narendra Modi Could Be Japan’s Best Friend – Businessweek

The results of national elections in India, expected to be announced on May 12, could mean good news for Japan and not such good news for China. Narendra Modi, the leader of the Hindu nationalist opposition party, has long been a favorite of Japanese Prime Minister Shinzo Abe, who would like to foster military and economic ties with India. Modi, the front-runner in the contest to be India’s prime minister, and Abe also share an antagonism for China. Modi has criticized the government of Prime Minister Manmohan Singh for being too accommodating toward China and has pledged to take a tougher line on issues such as the border dispute between the two countries that has festered for decades.

A supporter of Narendra Modi dons a mask of the Hindu nationalist candidate

Abe has clashed with China in a dispute over the ownership of several islands in the East China Sea. When it comes to the Chinese, “the Japanese are extremely apprehensive,” says P.K. Ghosh, senior fellow at the Observer Research Foundation, a New Delhi think tank. “It doesn’t take a genius to say India can be the largest friend of the Japanese.”

Abe has long treated Modi as a kindred spirit. Even after the George W. Bush administration put Modi on a travel blacklist for his alleged role in the 2002 riots that killed about 1,100 people, mostly Muslims, in Gujarat state, Abe welcomed Modi to Japan. The Indian politician, who was exonerated by the Indian courts, visited in 2007 during Abe’s first term as prime minister and then again when Abe was opposition leader in 2012. “Japan has worked very hard to improve relations with India,” says retired Indian General Vinod Saighal, author of Revitalising Indian Democracy. With a Modi victory, he says, relations “will get a boost, certainly.”

via India Under Narendra Modi Could Be Japan’s Best Friend – Businessweek.

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11/04/2014

Young professionals in Bangalore favour Modi’s promise, shrug off riots | India Insight

As far as Vinod Hegde is concerned, Indian prime minister candidate Narendra Modi bears no responsibility for the 2002 Gujarat riots. More to the point, Hegde doesn’t care.

Hegde, a 26-year-old stockbroker in Bangalore, said that for people like him, the Gujarat chief minister is the only choice to lead India after countrywide parliamentary elections that began this week.

Allegations that Modi failed to stop or even allowed deadly riots in 2002 don’t sway his vote, Hegde said. And if the ruling Congress party’s candidate is Rahul Gandhi, the choice becomes even clearer.

“Even assuming Modi has been responsible for XYZ, we don’t see an alternative,” Hegde said. Referencing a Twitter post by music director Vishal Dadlani, he said, “If I had to choose between a moron and a murderer, I’d probably choose the murderer.”

Not everyone states their case for supporting Modi in such blunt terms, but interviews with young professionals in Bangalore, the information technology hub known as India’s Silicon Valley reveals a calculation in favour of Modi and the Bharatiya Janata Party (BJP) that omits the riots from the equation.

For many people in Bangalore’s highly educated workforce, Modi is a welcome alternative to what is seen as an ineffective and corruption-tainted Congress party. They are part of what some media organizations have called a “Modi wave” that opinion polls, however unreliable, say could bring the BJP to power and push out the Gandhi-Nehru family’s Congress party.

Many BJP supporters see Rahul Gandhi, the party’s leader and the Gandhi family’s heir apparent, as ill suited for the job of running a country that is trying to revive its slowing economic growth and to provide opportunities for prosperity to its burgeoning middle class. (A note for people unfamiliar with this round of Lok Sabha elections: Indians will vote for members of Parliament in their local constituencies, and the winning party’s leadership names its ministers when it forms a new government.)

via Young professionals in Bangalore favour Modi’s promise, shrug off riots | India Insight.

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09/04/2014

India’s Election Choice: Growth Economy or Welfare State – Businessweek

Indian elections aren’t known for their clarity. Messy, cacophonous affairs, they stretch across months and almost invariably result in fragmented verdicts. Political groupings are opportunistic, driven by personality rather than issues; competing party platforms are often indistinguishable.

A shopkeeper displays water sprinklers with portraits of Rahul Gandhi and Narendra Modi in Chennai, India<br />

This year’s parliamentary elections—the nation’s 16th since independence, running from April 7 to May 12—are proving an exception. The distinctions between India’s leading parties are unusually sharp; the race is shaping up as a genuine battle of ideas, a real debate over the direction of the nation.

India’s two main parties are led by men who in many ways couldn’t be more different. Rahul Gandhi, the standard-bearer for the ruling Indian National Congress party, is the scion of a distinguished family that includes three former prime ministers. At 43, he’s also the candidate of youth. Narendra Modi, the leader of the Bharatiya Janata Party (BJP), which is ahead in most polls, is 63, a self-made man, and an experienced administrator who has served for more than 12 years as the chief minister of the state of Gujarat. Gandhi espouses a brand of secular, inclusive politics; Modi is viewed with suspicion by many for a series of bloody communal riots that took place under his watch in Gujarat. (The Indian courts exonerated him of personal involvement.)

via India’s Election Choice: Growth Economy or Welfare State – Businessweek.

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07/03/2014

India’s anti-graft party takes aim at Modi’s economic model | Reuters

Indian opposition politician Narendra Modi, who leads opinion polls ahead of next month’s general election, faces pressure from a small anti-graft party attacking his economic model on his home turf, the thriving state of Gujarat.

Arvind Kejriwal and friends

Arvind Kejriwal and friends (Photo credit: vm2827)

The pro-business leader has presided over rapid economic growth during more than 12 years as the chief minister of the coastal state, and slashed red tape to attract companies such as Ford, Maruti Suzuki and Tata Motors.

Now, Modi promises to replicate his state’s development model nationwide if he becomes prime minister.

But Arvind Kejriwal, the leader of the Aam Aadmi Party, on Friday said small businessesin the state were being shuttered, public schools and health services were in poor shape and claims of regular supplies of electricity were not true.

“What is your development model?” Kejriwal asked as he tore into the heart of Modi’s campaign, saying that 400,000 of the state’s farmers who had applied for electricity connections years ago had yet to receive them.

“If you haven’t even given a connection, how will you give them electricity?”

India’s western state of Gujarat has been hailed for rapid measures to develop infrastructure and provide stable power supply, but critics often say it lags behind other states in social development.

“What we’ve seen in the last two days is quite shocking,” Kejriwal told reporters at a meeting on the edge of the state’s commercial capital of Ahmedabad.

Kejriwal, who was denied an audience with Modi, questioned the Gujarat chief minister’s claims on farm growth, job creation and clean governance, and suggested he was too close to big business.

He was on a tour to study conditions in Gujarat, as part of his party’s first national campaign since bursting onto the political scene with a stunning victory in Delhi’s local election in December.

via India’s anti-graft party takes aim at Modi’s economic model | Reuters.

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