When Jim Rogers, legendary maverick investor, attacked NAMO for “Only talk and no action”, a lot of people dismissed his criticism as the ranting of a foreigner with no idea of the ground realities in India.
However, when the highly respected and distinguished Deepak Parekh says the same thing, it is more serious and requires careful consideration.
Deepak Parekh of HDFC is the first citizen of corporate India. He is the “guiding voice” of India and his views are held in utmost esteem.
It is very rare for people in that elite echelon of society to publicly criticize the Government. However, when they do, it is to send a clear message to the powers-that-be that big-bang reforms are required.
In his latest interview, Deepak Parekh did not mince words. “Nothing has changed in the Modi Raj” he said. “… after nine months, there is a little bit of impatience creeping in as to why no changes are happening and why this is taking so long having effect on the ground” he added.
Deepak Parekh also sent a veiled threat that NAMO is enjoying a “lucky period” owing to the fall in world commodity prices, implying that NAMO could not claim full credit for the feel-good factor and bonhomie that the markets are presently witnessing.
As if to counter the hostile press that NAMO has been getting lately, Nitin Gadkari came on record to state that “NAMO Will accomplish in five years what has not been done in the past 25 years”. Gadkari gave impressive facts and figures of what the Government has already achieved in the past nine months. He also laid out a road map for what is being planned for the future.
Towards the end, Gadkari slipped in a clear message that there would be big-bang reforms in the Budget. He said:
“The finance minister has his own constraints. But he is very positive about infrastructure. The budget should be very good for our shipping, inland waterways etc. I have requested for green energy incentives as well.”
In my view, the writing is on the wall. The concerted attack on NAMO from various quarters, coupled with the humiliating defeat to AAP, means that NAMO will have to retaliate with big-bang reforms in the Budget.
This will send the markets flying. We need to position ourselves carefully so that we get maximum bang for the buck.
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