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India Inc happy on stability hopes
May 13, 2004 17:31 IST
After the initial jitters, the stock market, trade and industry reacted positively to the Lok Sabha results, noting that the Congress-led government would be stable and would continue the reform process that the party started in 1991.
Even the fact that the Left parties would be Congress' key partner did not dampen the mood of India Inc, which pointed out that even in West Bengal the Left front government had started opening up the economy and also the Chinese government had carried out reforms for long.
After the BSE plummeted by 220 points over the prospects of a hung Parliament, the stock market witnessed a renewed confidence from investors, both individual and institutional, who expected political stability and continuation of the liberalisation and reforms policy by the new government to spur growth.
Listing out some of the governmental failures like tackling the issue of unemployment, infrastructure bottlenecks and social sector development, the Federation of Indian Chambers of Commerce and Industry President Yogendra Modi said the new government should give thrust to these issues which affected common man.
On whether the industry had any apprehensions if Congress President Sonia Gandhi took charge of the new government, Modi said, "Leadership is not an issue for the industry".
"The only thing we look forward to is stability which can come only if all the constituents of the government become a part of it (new government) and not extend support from outside," he said.
India Votes 2004