India Inc’s finance honchos back Narendra Modi

By: Shalini Dagar
"Jo des ko kare pyaar voh Modiji ko kaise kare inkaar,” is how one senior Mumbai-based finance professional puts it rather cheekily. Not everybody may share that sort of unbridled enthusiasm for Modi, but the broad CFO-think is clear. Finance heads are looking for a strong and stable leadership.

After the assembly elections in five states, CFO India conducted a survey amongst the top echelons of the finance community dealing with the chances and prospects of a Modi-led government. Over 100 responses from CFOs, finance directors and senior finance professionals suggest that the dream team of the United Progressive Alliance has disappointed rather deeply.

The depth of their disappointment comes through in that an overwhelming 82% believe that the UPA needs to take the blame for deceleration in economic growth from 7-9% to sub-5%. Another 14% believe at least some blame for mismanagement goes to the government.





“I am not against the UPA, but I think it is time for change,” says a Mumbai-based CFO who did not want to be named. Subba Rao Amarthaluru, group CFO, RPG Group, agrees: “There are excellent people in the UPA, but there is a defect in the governance model. Administrative power without political authority does not work.”

In such a scenario, Modi’s track record of being action-oriented enthuses many. And his secular credentials or the lack of them are less of a concern now. JK Gupta, CFO of CMC Ltd, says “Modi’s secular credentials may be an issue in politics but not in economics. And today, economic issues are primary concerns for the citizens. He has a track record and it is expected that he will be decisive.”



The future outlook, however, is decidedly turbid. Nitin Parekh, CFO of Cadila Healthcare, says: “Given the state of the economy, it will be difficult to go beyond 6% growth in the immediate future.”

A majority expect growth to be middling at 5-6%, with high single digit inflation and peg the Sensex at around present levels of 21,000 in 2014-15 if Modi comes to power; 44% see growth breaching 6% and 46% see the Sensex at over 25,000. Faith in Reserve Bank governor Raghuram Rajan is also in ample evidence with a large number of respondents expecting the rupee to retrace its journey to the pre-summer range of 55-60 to the dollar.



(The writer is managing editor at CFO India magazine)