The victory of the Narendra Modi-led BJP in Gujarat assembly elections and the Congress Party in Himachal Pradesh was welcomed by India Inc with industry captains stating governments in both states should herald new investments with stable, investor-friendly policies. Corporate India feels political parties should put development agenda on the forefront as people want good infrastructure.
Complimenting the victory of Modi, who won for the third consecutive time, RC Bhargava, chairman of the country’s largest carmaker Maruti Suzuki said: “What we look for before investing is good governance, which is needed for any industry to work well. As long as that is met, along with good infrastructure, it is good for us.” Maruti has emerged as one of the biggest investors in Gujarat with plans to build a new plant there.
Suzuki Motor Corp chairman Osamu Suzuki had visited the state in September to inspect the land and had signed an agreement with the state government. This is the company’s first plant outside Haryana.
Maruti has committed investments of Rs 8,000 crore to build a 1,100-acre mega-factory in Mehsana district to produce 1.5 million cars per year at peak output by 2018-19. Production is expected to start by 2016. With a focus on exports, this plant is expected to become parent Suzuki’s global small car hub.
Adi Godrej, chairman of the Godrej group and president, Confederation of Indian Industry, while complimenting the BJP and Modi said: “The stability in the state will enhance the confidence of the industry and herald new investments.” He said CII has been working closely with the state government and looks forward to continuing its engagement for Gujarat’s progress.
On Himachal Pradesh, Godrej congratulated the incoming Congress government. “The clear mandate provides a great opportunity for the new government to take necessary and bold measures to develop infrastructure and industrial clusters. CII looks forward to working very closely with the new government,” he added.
TV Mohandas Pai, chairman, Aarin Capital and formerly director HR Infosys said: “The elections have shown that a development-based agenda is a winnable one as it is a politically astute strategy by treating everyone equally. Our Parliament should give up divisive politics and put development on the forefront because people want good infrastructure. Narendra Modi’s victory has strengthened the belief that development is the best agenda,” he said.
“Narendra Modi’s victory reaffirms his dynamic and pragmatic approach towards social and economic upliftment and industrialisation. This will lead to many more business-friendly measures and policies that the state is known for and greatly help industry invest more in the state,” said Harsh Pati Singhania, director, JK Organisation and president, International Chamber of Commerce, India.
“The victory of Narendra Modi shows that he now has clear five years ahead to implement all his greenfield projects that will create employment, be it in education, real estate, infrastructure etc. He will also follow this vigorously to attract investments for Gujarat,” Lalit Kumar Jain, national president of Confederation of Real Esate Developers’ Associations of India and chairman and managing director, KUL, a real estate company, said.
India Inc has always been appreciative of the economic and business initiatives of the Modi government. The chief minister’s annual Vibrant Gujarat summit to invite investments has always been attended by the bigwigs of the industry where lots of agreements are signed.
Modi created the image of decisiveness and speedy clearances with the industry when Tata Motors’ ambitious project to build the cheapest cars in the world, Nano was ousted from West Bengal to find refuge in Sanand in 2008. The plant was set up in a record time of 14 months. The development led to the state emerging as an automotive hub of the country. Ford too has started building a factory in the state. Hero MotoCorp, India’s largest two-wheeler maker, has also acquired land to set up its next manufacturing facility in Gujarat.
Apart from the ability to set up factories on a fast-track basis, Gujarat’s well-developed port infrastructure is also attracting automakers.
The chemicals industry has also grown rapidly with the likes of DuPont, BASF and Dow Chemicals setting up shop in recent years. The state now accounts for 51% of the national chemical sector output.