E-Paper
Lok Sabha elections 2019: Mumbai Traders to accept Modi’s business card again
Mumbai’s business community says Centre did take positive steps, but there were also disruptive decisions like GST, demonetisation
During Prime Minister Narendra Modi’s campaign in 2014, some of the biggest support and backing came from head honchos of India Inc. and large and small business owners. Five years on, as Modi makes another run for prime ministership, the enthusiasm of the business community in Mumbai has waned, owing to a mixed record of policies and planning.
Business leaders point out that positive steps were taken by the Modi government, however, major decisions like demonetisation, bringing in Real Estate Regularity Authority (RERA) and the roll-out of the Goods and Services Tax (GST) dampened business.
Mumbai, being the financial capital of the country, is a hub for all major and minor businesses. Traditionally, the business community was Congress supporters, but over the past two decades, this support has moved to the BJP. Impressed by the reforms and the ‘Gujarat model of development’ of the then Gujarat CM Modi, the business community put its weight behind the BJP and Modi’s leadership.
Now, amid the high-decibel campaigning for the general elections, the business community is divided over re-electing Modi. The PM has an edge, chiefly owing to a lack of a credible alternative.
According to Niranjan Hiranandani, co-founder and MD of Hiranandani Group and president of real estate industry association NARDECO, the GDP of the country has grown in five years, but back-to-back polices and decisions have hit the economy and business.
“Challenges have hit the industry, starting with demonetisation, RERA, GST and the insolvency bill. These have definitely challenged us. Individually, each of them is good. Demonetisation is conceptually correct; GST and RERA were right steps too. But bringing them back-to-back was what caused the challenge. The industry had a setback, it was hurt and hit,” Hiranandani said. The Centre has focused largely on providing affordable houses and “housing for all” by 2022.
The growth rate is little over 7%, but it has failed to produce proportionate amount of jobs in the country. Employment generation is not happening in tandem with growth rate and industry leaders blame it on lack of private capital expenditure, demonetisation and implementation of GST.
Hiranandani said the government needs to shift focus on to sectors that would create jobs. He added, “The economy is in a difficult situation and sectors such as power, steel, gems and jewellery are going through a negative patch. While the GDP is going up, a good sign, focus needs to be on job generation. Manufacturing is suffering owing to automation. Infrastructure, real estate, irrigation have huge labour requirements today. The government needs to push those industries where not only does the GDP go up, but also employment.”
Mohan Gurnani, chairman of Chamber of Associations of Maharashtra Industry and Trade (CAMIT), said support for Modi and the BJP has waned since 2014. “Earlier, we were supporting PM Modi hands down, but now business is in recession. Things are not the same as they were for Modi, but we have to see the alternatives also. There is none,” Gurnani said.
A section of micro-, small- and medium-size business owners –— the segment that contributes largely to the GDP growth, generates 45% of total employment — are “unhappy” with the lack of decisions to support small and medium enterprises (SMEs). Chandrakant Salunkhe, chairman, SME Chamber of India, said the Modi government “has not done enough for SMEs.” Salunkhe said, “Modi said he would support SMEs, but he has not done much. He focused on ‘Start-Up India’, but that is for big players. No policies or schemes were announced for SMEs, which provides employment to a large chunk of population.”
Refusing to comment on the current sentiment, Deepak Parekh, chairman of HDFC, said, “I think the government has done well. They have brought in reforms, transparency. They brought in GST, which so many PMs have tried and failed; the insolvency regulation, they brought in RERA, which helps our industry”
Leaders from the gems and jewellery industry, which is going through a slump, with exports down by 8% to ₹32.72 billion in 2017-18, chiefly due to low demand, stand divided. “There have been challenges and there is a definite change since 2014. The feelings are mixed,” said Anoop Mehta, president of Bharat Diamond Bourse (BDB).
Meanwhile, Mehta’s colleague and BDB committee member, Kirit Bhanushali, said, “A large chunk of diamond business owners are still with Modi. Some sections are slightly upset due to some decisions, but when they think of leadership, there is no alternative.”
