Corporate Calcutta Is Cool To Polls

Corporate Calcutta is not unduly worried about the outcome of the forthcoming elections. But it is not excited about the elections too, with opinion ranging from apathetic to impatient. Most see elections as a necessary evil.

It is an established fact that the liberalisation process, which the Congress government kicked off in the early nineties, is here to stay. Hence, the election outcome will not have any significant impact on the industry as a whole, Shaw Wallace & Co spokesperson Harsimron S Sandhu said. Since no party has shown any intention of deviating from reforms, we do not anticipate any change in the direction in which the economy is moving, he added.

 

This sentiment was echoed by the spokesperson of another corporate house: Last year, an excellent budget had been passed with hardly a government to speak of. Some corporate representatives feel that corporate spending on elections was indicative of the system becoming transparent. One of them said: It is after all the shareholders money. Our opinion is dependent on what shareholders feel. However, according to Indian Chamber of Commerce secretary general Nazeeb Arif, corporate spending on elections is an avoidable expenditure, But if a stable government is voted to power, the industry will benefit, he said. Arif felt it was impossible to make long-term investments in times of political uncertainty and frequent elections. There has been no value addition to the economy in the last few years, he said.

In contrast, RPG group chief advisor, corporate relations, Mani Sankar Mukherji feels that since Indian companies operate in a democratic set-up, the corporate world must learn to respect the electoral process and see elections as a part of the system.

He said: Though it is sad that India has to go to polls so frequently, it is the companies that always benefit from good governance. Mukherji said this was the time when the corporate world must work the hardest since with elections round the corner, the bureaucracy would not take major decisions. A section of the industry attributes the current industrial slowdown to political instability. Over the last few years no significant policy has been pushed through. Some of the bills hanging fire are the airport bill on the open skies policy, urban and land ceiling act, the income tax bill, and the foreign exchange management act. Production also gets affected because the workforce gets distracted by campaigns and voting. they said.