In a surprising turn of events, chief executive officers (CEOs) of Indian companies anticipate that the new government will maintain policy continuity and uphold economic reforms, despite the National Democratic Alliance (NDA) securing fewer seats than expected in the general elections. Industry leaders are urging for ongoing economic growth through infrastructure enhancements and manufacturing boosts facilitated by production-linked schemes.

“It is the collective wisdom, and one should accept it. From what it seems, the same party will form the government again, so the policies should continue once things settle,” said H M Bangur, chairman of Shree Cement, emphasizing the need for stability and policy consistency.

The election results coincide with a slowdown in manufacturing activity for the second consecutive month in May. However, business sentiment remains positive, reflected in increased hiring, according to the May Manufacturing Purchasing Managers’ Index.

“The exit polls seemed to have been very wrong, and the market seems to have reacted very badly. Although the NDA leads in the elections, there is still a lot of uncertainty, although the industry will not be badly affected. Some industries dependent on the government will be affected. I also feel the market overreacted on both days,” said Nadir Godrej, chairman and managing director (MD) of Godrej Industries, reflecting on the market’s response to the election results.

Despite the initial negative market reaction, CEOs express confidence that the markets will rebound as reforms continue. “The stock markets fell on Tuesday after high expectations created by exit polls. But once reality sinks in, the industry will look at the composition of the new government,” said a CEO of a company.

Industry leaders commend the current government for making substantial strides in policy and economic development over the past two terms. “The economy grew with major investments in developing the country. The real estate industry always looks towards a stable government that will ensure no interruptions in the ongoing schemes and investments in infrastructure development,” said Anuj Puri, chairman of Anarock Group, a real estate firm, highlighting the importance of stable governance for sustainable growth.

CEOs are hopeful that a stable government will address critical issues such as labour and farm reforms. “The production-linked incentive scheme has helped the industry become stronger, and we hope the new government continues with the scheme. Additionally, the new government should continue to pursue climate action and sustainable development goals,” said B Thiagarajan, MD of Blue Star, a consumer durables firm, emphasizing the need for continuity in progressive policies.

With a focus on innovation, regulations, and infrastructure, industry leaders look forward to contributing significantly to India’s economic progress. “We look forward to a government committed to fostering innovation, streamlining regulations, and investing in infrastructure. Expedited project completions and a reduction in goods and services tax (GST) on televisions (TVs) and air conditioners will further propel our sector’s growth,” said Avneet Singh Marwah, CEO of Super Plastronics, a TV manufacturer, outlining the sector’s expectations from the new government.

The CEOs also stress the importance of accelerating India’s transition towards cleaner energy and achieving the net-zero target. “We hope the new Union government will take an even more pragmatic approach to incentivising wide-scale adoption of clean energy, whether through lower taxes and duties on clean energy solutions or more simplified subsidies,” said Aayush Goyal, MD and CEO of RCRS Innovations, a lithium-ion battery manufacturer, highlighting the need for sustainable energy policies.

In the healthcare sector, digital transformation is seen as crucial for enhancing last-mile healthcare delivery. “Through programmes like ABHA (Ayushman Bharat Health Account), we have seen how technology can enhance last-mile health care delivery and create better outcomes for patients,” said Ayush Jain, CEO of Mindbowser Inc, emphasizing the need for faster implementation of health technology initiatives under the new government.

In conclusion, a stable and progressive government is seen as essential for sustaining India’s economic growth and addressing key challenges across sectors. As the new government takes charge, industry leaders are optimistic about its commitment to driving innovation, streamlining regulations, and investing in critical infrastructure, paving the way for sustainable growth and development.