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India Inc unfazed by Andhra results

Last updated on: May 12, 2004 08:52 IST

The markets crashed under the debris of the Chandrababu Naidu led TDP government in Andhra Pradesh but India Inc is clearly not in a tizzy.

The dominant feeling is the reform and development will continue no matter which party comes to power.

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However, leading corporate houses feel that the pace could suffer if there is no stable coalition at the Centre as it would be subject to far too many contradictory pulls and pressures.

"We believe that the IT industry has matured and is fairly self-reliant today. Any pro-development government will be able to sustain the economic progress this region has seen" said Nilekani.

There is a consensus among the corporate chiefs that the pace of reforms will continue even if the NDA fails to make it. "Every things depend on the formation of the government. A change is welcome provided the new government is stable," said a senior banker.

"The economic agenda will

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remain more or less the same irrespective of who comes to power but a good majority will give people the power to push through what they want. The presence of many marginal players in the ruling party is not a very good sign as each has a different agenda," said Arun Nanda, executive director of Mahindra & Mahindra striking a note of caution.

A Hinduja executive made the same point when he said, "If there is no clear majority for any of the different combinations the government at the centre might not be able to take any hard decisive action on economic issues. It will be up to the Prime Minister's skill and ability to lead and manage coalition politics in the changed context and at the same time continue the economic reforms which are half finished."

A senior executive with a diversified conglomerate said that the results of Andhra Pradesh will be largely offset by that in Karnataka where the NDA is expected to ride to power.

"In such a situation reforms will go-ahead as the NDA will come back to power," the senior executive said. Amit Tandon, managing director of Fitch Ratings, pointed out that even in the past, reforms had continued despite the presence of coalition governments.