New govt expected to 'push the accelerator' on reforms: Assocham President

The new central government, set to be sworn in within the next few days, is expected to "push the accelerator" on reforms across industries, Sanjay Nayar, president of the Associated Chambers of Commerce and Industry of India (Assocham), said on Monday.

The results of the 2024 general elections in India are set to be announced on June 4. According to exit polls, the Bharatiya Janata Party-led National Democratic Alliance is set to retain power for the third consecutive time.

Nayar, who is the founder and chairman of venture firm Sorin Investments, told Business Standard over email that the gross domestic product (GDP) growth rate of 8.2 per cent has set the stage for the new government.

He said that emerging technologies like data science, artificial intelligence, and machine learning would need to be customised to meet India-specific requirements in healthcare, education, climate change, and taking manufacturing to the next level of modernisation.

Nayar expects "the new government to push the accelerator on reforms encompassing several areas including the startup ecosystem, fintech with soft-touch regulations, and a boost to agriculture in terms of new technology and modern practices."

"With the advantages of solid GDP growth above 8 per cent, prospects of a good monsoon, comfortable foreign exchange reserves, and a stable rupee, the new government will have a stage set for the next level of economic expansion," he added.

Last week, data released by the government showed that the Indian economy may have grown by a rate of 8.2 per cent in 2023-24 (FY24), considerably higher than the Reserve Bank of India's projection of 7 per cent.

"As the new government is set to be sworn in within the next few days, India Inc. remains very bullish about India, retaining the coveted status of being the fastest-growing amongst the major economies of the world," he said.

"We expect the incoming government to give a lot of focus on employment generation, human resource development, and increased workforce participation, especially women," Nayar said, adding that MSMEs, equipped with technology and adequate credit, can be a major multiplier for job creation.

"Large enterprises should champion India's imprint in the global economy," he said.

Nayar also pointed out that it is necessary for investment growth to propel the supply side in order to get a balance "between cyclical consumption-driven growth and inflation."

"Private [investment] more than government. Something to closely watch," he said.

Moreover, there must also be a focus on reforms related to climate change.

"We would like the new government to attend to the issue of climate change with renewed vigour, setting specific targets with regards to ecology, afforestation, and renewable energy, though some of the targets are in place," he said.