India Inc calls for bolder, progressive reforms as PM Modi begins 3rd term

As Prime Minister Narendra Modi starts his third term in office, India Inc. wants his government to undertake “bolder reforms” and lay a strong foundation for a Viksit Bharat (developed India).

Deepak Sood, secretary general of the Associated Chambers of Commerce and Industry of India (Assocham), said in a statement that the industry and global investors feel “reassured” of “fast and bolder reforms”. And these reforms, Sood said, should be well beyond the economy, touching upon wider governance, quality and ease of living and leveraging upon the aspirational young population.

“We have been listening to your messages carrying conviction of bolder measures for taking India to the next level of development,” he said.

Business leaders are also holding high hopes from the upcoming Union budget.

“We are looking forward to the forthcoming regular Budget of the new government, which should serve as clear policy directions and priorities of the NDA Government,” Assocham President Sanjay Nayar said, adding that the industry body would soon forward their suggestions related to the Budget to the new finance minister.

PM Modi took oath along with 72 ministers of the new coalition government. Thirty of them are Cabinet ministers, five with independent charges, and 36 Ministers of State. Their portfolios are yet to be announced.

Another industry body, the Federation of Indian Chambers of Commerce and Industry (Ficci) said that this third term of the National Democratic Alliance (NDA) would pave the way for continuity of reforms.

“We look forward to progressive policies and measures that will foster economic and social development and build a strong foundation for Viksit Bharat,” said its president Anish Shah.  

Sanjiv Puri, chairman and managing director of consumer goods major ITC Ltd, who took charge as the president of Confederation of Indian Industry (CII) last month said that the formation of this government was a “pivotal moment for India”.

“Building upon a strong growth rate of 8.2 per cent for 2023-24, the new government under his visionary leadership can usher in the next phase of reforms to make the most of the global opportunities and build on the robust fundamentals of the Indian economy,” he said in a post shared by CII on social media platform X.

“This is a pivotal moment for India, and Indian industry is keen to work with the incoming government to further accelerate the developmental journey of the nation,” he said.

Sanjeev Krishan, Chairperson at PwC in India said the new government has a task of shaping the economic and social destiny of the “world’s most populous and young democracy”. He listed three areas which need to be prioritised.

First, he said, the Centre should work on enhancing the trust quotient with the youth by engaging them with skill-driven employment and entrepreneurship initiatives.

“Focusing on research and development, with the right incentives and backing to bolster India’s innovation landscape,” he said.

He added that the Centre must also collaborate with industry and academia to build policy and regulatory frameworks to “transform technologies and leverage it more meaningfully in the India context”.

Lastly, he said the government must embed sustainability as a core principle in the planning and execution of key governmental initiatives as well as programmes driven through public-private partnerships.

“Moving sustainability from a risk-protocol to a strategic opportunity,” he added.

Mahindra Group Chairman Anand Mahindra, in a post on X, said, “Hope the new term will prove to be important for the development and prosperity of India.”

What does Modi 3.0 look like?

Uttar Pradesh, Bihar and Maharashtra saw maximum representation in PM Modi’s council of ministers. UP, which sends 80 members to the Lok Sabha, got nine ministerial berths. This includes one cabinet rank.

Bihar bagged four cabinet berths out of a total of eight ministers from the state. Maharashtra got six ministerial berths, including two Cabinet ministers.

They are followed by Gujarat, Madhya Pradesh and Rajasthan which have five members each in the council.

Five former chief ministers made their way into Modi 3.0 cabinet. These include Janata Dal(Secular) leader HD Kumaraswamy, four-time Madhya Pradesh Chief Minister Shivraj Singh Chouhan, Hindustan Aawam Morcha (HAM) leader and former CM of Bihar, Jitan Ram Manjhi, two-time Haryana chief minister Manohar Lal Khattar and former chief minister of Assam Sarbananda Sonowal.