BW/Cvoter Exclusive Survey among the Business Leaders
By Yashwant Deshmukh & Manu Sharma
In BW/Cvoter exclusive survey of industry sentiment vis-à-vis Modi Sarkar's first year in power, the mood conveyed is of measured satisfaction. Far from the almost hysterical reception that May 2014 election results got, there is some reality check creeping into industry sentiment. The survey divided industrial organizations into IndiaInc or BigCaps, MidCaps, SMEs and HNIs (High Net Worth Individual investors) for the purposes of analysis.
More than 50% of respondents from India Inc, SMEs, MidCaps and HNIs rate Modi Sarkar's first year between excellent and very good. That is across all the classes of capitalists, those who rate Modi Sarkar average or lesser is below the 50% threshold. When it comes to confidence in service delivery, the sentiment of industry is unambiguously clear. 68% HNIs aver that PM Modi is walking the talk and he will deliver on his promises. Similar figures for India Inc, MidCaps and SMEs stood at 58%, 63% and 62% respectively.
Make In India policy of Modi sarkar has been touted as one of the seminal policy stances of the NDA II government. While IndiaInc, SMEs and HNIs are convinced by its benefits to the industry with affirmation rates of 64%, 59% and 57% respectively. The MidCaps are not that enthused by the same with only 38% affirming the policy move. Maybe this has a lot to do with time-lapse between policy making and policy-implementation.
The amendments in the Companies Act have been well-received amongst IndiaInc, MidCaps and SMEs. HNIs have also welcomed them in some measure. However, when it comes to ease of doing business, 77% of IndiaInc avers that government has only partially delivered on the ease of doing business front, 53% of HNIs also echo the same sentiment. Only about a third of SMEs and MidCaps stated a significantly enhanced ease of doing business. Similarly when it comes to changes pertaining to labour laws, IndiaInc 56% and HNIs 54% are happier than SMEs 52% and MidCaps 49% when it comes to new statutes.
The FDI hike in insurance and real estate stands well-received, with all sectors of the industry handing it a positive rating. Responding to the query on factors derailing good governance, IndiaInc rated communal rants by 'Fringe' as its most irritating road-block in the otherwise business-focussed government. MidCaps cited unresponsive bureaucracy as an issue while SMEs stated bottleneck created by opposition as the chief hurdle to growth. The industry is also mixed in response to a question on spurring of growth by the NDA-II. While a healthy percentage across the industrial spectrum does agree to a boost in growth, amongst all sectors of industry the predominant thinking is that growth has been spurred in some measure only or not at all. The highest praise for NDA-II across the board is focused on improved domestic and international sentiment along with the improved image of India at the global level. The comparatively lower rated areas of government include efforts towards easing and streamlining of taxation issues and checking of corruption.
In terms of overall industry support and affirmation, HNIs are the most satisfied bunch with a rating score of 70.6 out of a possible 100. Closely followed by the MidCaps score of 70.2 while SMEs gave a score of 68.9. Diverging significantly from the score-line posited by the other three, big business gave a rating of only 60.2. This reinforces the sentiment in some segments that big business and corporate houses in India are not yet enthused by new policy thrusts of NDA-II. In effect small to medium business and individual capitalists are happier than corporations when it comes to life under Modi Sarkar.
Methodology: The Team Cvoter interviews 237 business leaders of India in first week of May using a structured questionnaire in multi-mode approach. While almost every 4th of them belonged to BigCap management as well as MidCap companies; half of them from SME and HNI polled together. The rating questions were on 0 to 10 scale for 10 parameters; and the total score obtained was on 0 to 100 scale.