With their near majority in the Karnataka elections leading to an invitation to form the government, BJP have sent out the strongest possible signal to their naysayers ahead of the 2019 general elections. With Reuters claiming that the governing party had lost support of boardrooms across the country, we talked to Deepak Shenoy to find out which industries have experienced the most support since 2014.
Off the bat, there are some obvious winners. Any industry focussing on the production and usage of renewable energies and environmentally-friendly goals have been boosted by the Modi government’s desire to make India a leader in the fight against climate change.
Any company working in the solar field has seen significant subsidies, tenders and public support from the central as well as state governments. It is no surprise that Indian tenders were able to break the world record for cheapest per unit cost to set up large solar fields. Similarly, electric car manufacturers and advocates have seen governmental policies created for their benefit including a promise of up to 60% funding for research and development in January 2017.
On the flip side, a lot of nepotistic businesses have run aground of the NDA government’s battle against corruption. Multiple large industries that rely on ‘contacts’ have been forced to clean up their act or face the legal consequences. The surprise demonetisation move of November 2016 also shook up these old boys clubs.
Similarly, the banks are facing a much tougher time under the current central government. Although it may seem like the opposite with the Nirav Modi scandal and the proposed recapitalisation in November 2017, the government is actually cracking down. The reason the ‘bad loans problem’ has made regular headlines is because the Reserve Bank of India has increased monitoring of the financial industries.
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