What Indian election means for business
May 16, 2014-- Home Textiles Today,
New Delhi — In a rare break from its history, India has elected a leader not from the ruling Congress Party and indications are the new government will take a decidedly new pro-business stance.
Narendra Modi's overwhelming victory in the five-week long Indian election signals a major change in the direction of the country, which has been mired in a slow-growing position while its Asian counterparts — particularly China — have experienced double digit growth over the past decade.
Though forecast for a number of months, the victory by Modi and the BJP political party, was much more substantial than predicted, indicating the country wants full-scale change from politics — and business — as usual.
Modi, as the head of one of India's more industrial states, has been aggressive in supporting business and it is believed he will take that stance on a national basis when he assumes office shortly. And as the second largest home textiles producing country selling into the American market, that could mean renewed efforts to expand the country's business base.
“The overall business environment in India will explode," said Arun Agarwal, ceo of the Indian company Alok International. "This will be excellent time for making an investment in India. Modi is from the largest cotton producing state of India and very aligned with the textile business."
The new government, said Agarwal, "will be excellent for textile companies globally and will make India even more relevant as a country of manufacturing. His policies are going to support business growth.”
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