rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Modi win is blow for Tesco but good for investors

Modi win is blow for Tesco but good for investors

April 09, 2014 08:41 IST

Modi win is blow for Tesco but good for investors

     Next

Next
Andy Mukherjee

A win for Narendra Modi would be bad news for Tesco and its rivals, but good news for other investors.

The Indian opposition leader's party says it won't allow foreign supermarkets to enter the country if it wins the general election. But that is just one discordant note in a manifesto that is sweet music to financial markets.

Click NEXT to read more....


Image: BJP's prime ministerial candidate Narendra Modi.
Photographs: Rajesh Karkera/Rediff.com

     Next

Modi win is blow for Tesco but good for investors

Prev     Next
Prev

Next

The decision by Modi's Bharatiya Janata Party (BJP) will leave some retailers fuming. Britain's Tesco, which has already received approval from the current Congress Party government to start a joint venture with the Tata Group, may have to drop its plans.

Carrefour, which said last month that it was "thinking about India," will be able to do little more if the pronouncements become national policy.

Click NEXT to read more..


Image: Retail giants like Tesco may have tough time if BJP comes to power.
Photographs: Reuters

Prev     Next

Modi win is blow for Tesco but good for investors

Prev     Next
Prev

Next

Modi's decision is a calculated move. The BJP counts the owners of several million mom-and-pop stores as among its most loyal supporters. Besides, the manifesto makes it clear that foreign money will be welcome in practically every other industry.

Click NEXT to read more....


Image: Local businessmen are Modi's biggest supporters.
Photographs: Reuters
Tags: BJP , Tesco

Prev     Next

Modi win is blow for Tesco but good for investors

Prev     Next
Prev

Next

The document also promises to cut red tape, expedite project clearances and make India an easier place to do business. The party's commitment to end "tax terrorism" will cheer telecom operator Vodafone, which has fought the Indian authorities for six years over a $2 billion claim. 

Click NEXT to read more....


Image: BJP's assurance of tax reforms in telecom sector will cheer firms like Vodafone.
Photographs: David W Cerny/Reuters
Tags: Tesco , India

Prev     Next

Modi win is blow for Tesco but good for investors

Prev     Next
Prev

Next

The BJP has also pledged fiscal discipline and said it will start a nationwide market in farm produce to deal with inflationary food shortages.

Click NEXT to read more...


Image: BJP has promised to start nationwide market for farm produce.
Photographs: Rupali De Chowdhuri/Reuters
Tags: BJP , Tesco

Prev     Next

Modi win is blow for Tesco but good for investors

Prev     Next
Prev

Next

The party remains vague about banking reforms and made no mention of the long-pending plan to raise the ceiling on foreign investment in insurance companies to 49 percent from 26 percent. 

Click NEXT to read...


Image: Ceiling on FDI in insurance sector may be raised if BJP comes to power.
Photographs: Uttam Ghosh/Rediff
Tags: Tesco

Prev     Next

Modi win is blow for Tesco but good for investors

Prev     Next
Prev

Next

Another notable absentee from the manifesto was a commitment to restart privatisation, which came to an end when the BJP lost power ten years ago.

That coyness is easy to understand, though. Such a pledge would have been politically immature without first securing the backing of regional parties which are likely to form part of any BJP-led coalition government.


Image: BJP has also committed to restart privatisation after coming to power.

Tags: BJP , Tesco

Prev     Next

Modi win is blow for Tesco but good for investors

Prev     More
Prev

More

Overall, though, Modi's message will also raise expectations that the election outcome can reverse the deterioration in the country's investment climate. If performance fails to strike equally high notes, Tesco and Carrefour won't be the only disappointed investors.


Image: India may become hotspot for investment if Modi becomes the next Prime Minister, says BJP.
Photographs: Reuters

Prev     More
Source:
© Copyright 2013 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.