It has to be said that there is an air of optimism in India and about India as the Narendra Modi Government completes its first year in office. Economic growth has moderately rebounded, capital inflows have increased, exports have accelerated, business and consumer confidence is looking up, capital markets have strengthened and inflation has eased a bit. What is good to see is that there appears to be a sense of purpose in improving the governance architecture and raising the standards.
The Government has made progress in putting in place building blocks needed to raise India’s potential growth. Initial steps at improving transparency, enhancing the ease of doing business and improving the efficiency in governance are expected to yield positive results in course of time. Sectors such as agriculture and education needs to give prime importance given the employment generating potential and its importance to the economy. On similar lines, we hope that pharma and healthcare are also given the required attention; as these two critical sectors needs a drastic overhaul and increased spending by the government; apart from a host of policy and other incentives.
The Government’s push for the manufacturing sector through its ‘Make in India’ campaign is a highlighting positive step and will help create millions of jobs if successful.
The Government seems to have grasped the major challenges facing India in multiple spheres and taking requisite steps. Needleless to say, it appears to be heading in the right direction. It augurs well for India in the medium to long term. Much will depend on the speed of legislation, decision-making and implementation over the next four years. So, although it’s a long way to the summit, but the initial climb has been pretty decent; so far. We hope the growth focus of the government continues backed by good execution.
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Mr. Glenn Saldanha is the Chairman and Managing Director, Glenmark