As if NAMO did not have enough trouble already from rabble rousers like Jim Rogers, big-ticket corporate groups have ganged up and are planning to consciously lower capital expenditure so as to create an “economic slow down” and discredit NAMO’s claims of “acche din”.
This shocking revelation has been made by Ambit Capital, according to a report in BS.
The report points out that a few major power, infrastructure, metals & mining companies are planning to consciously hold back capital expenditure to “create an economic slowdown”. Apparently, the move has been prompted by their disappointment over the PM’s crackdown on crony capitalists.
The report adds that NAMO will not be swayed by such tactics and is firm on his path of implementing the “detox diet for India”.
Ambit states that NAMO has realized that if the major capex projects are hastily kicked-off without cleaning up the ecosystem of corrupt officials and bent contractors then it will simply perpetuate the rot that had set in over the past 10 years.
Apparently, NAMO’s “detox diet for India” has four facets: pressurizing crony capitalists and contractors into re-thinking their traditional approach to rigging the system; attacking the subsidy fraud through Direct Benefits Transfer (DBT) and use the Aadhar as a means of identification; pressuring civil servants and public sector company chiefs to deliver in their day job and desist from graft and attacking the “black economy” which has acted as a medium of trade in the murky world.
Ambit also stated that NAMO’s crusade against black money has put the black money hoarders on the run. It predicts an exodus of Indian businessmen and professionals seeking residency abroad so that they can enjoy their ill-gotten gains there.
Macquarie endorsed Ambit’s view by awarding NAMO 7/10 in its “Modi Meter”. Macquarie pointed out that the government has done away with crony capitalism by moving all approval processes online, introducing an auction system for resources and focusing on improving ease of doing business. It added that corporates that are used to receiving doles and fiscal incentives are finding themselves thrown at the deep end of the pool and tackling competition to survive.
The conclusion in the reports is that NAMO has “multi-decadal ambitions” and will not be panicked into generating short-term results which could compromise his longer-term goals.