Industry welcomed the new expansion of Mr Modi’s cabinet, while welcoming the new team of ministers, Ajay Shriram, President, CII said, “The induction of new Ministers and Ministers of State would streamline governance and bring in new ideas for the economic reforms process. Industry was expecting such expansion of the Cabinet because multiple industries were been handled by single minister.”
However, the positive side of cabinet expansion is the fact that there is an increase within government regarding the aspect of taking the responsibility. With such expansion, industry can expect quick decision making and actions.
“At a time when the economy is undergoing a recovery process, it is important to fast-track facilitative and promotional policies to strengthen this,” added Mr Shriram. “The Cabinet expansion sends out a strong signal that the Government under Prime Minister Modi is serious about accelerating the reforms process.”
India’s GDP rose by 5.7 per cent in the first quarter of 2014-15, an improvement over the sub-5 per cent rate of the previous two years. Industry hopes that the new Cabinet would rapidly address areas of tax reform, land acquisition, power availability and ease of doing business, among others.
“While business sentiment has picked up since the new Government took over this expansion would support the process of faster decision-making, efficient and time-bound administrative processes and clearances, and promotional policies for certain sectors and would ensure that this gets translated into new investments. This would gain traction with the induction of more ministers in the Cabinet,” stated Mr Ajay Shriram.