Corporate India overly banking on new government: Survey

  “Achhe din aane wale hai…” this slogan of BJP election campaign seems to strike a chord with India Inc. as corporate India is expecting moon from the coming government. As per a recent survey done by Assocham, it clearly shows that expectations of the business community from the new government is at an all time high and it is also the highest in last two decades. These expectations ranges from putting economic growth engine back on track, taming inflation, bringing down interest rates and increasing employment. 
As per the survey, the level of expectation is climbing with each passing day and it has spread all across the various segments like industry, capital markets, financial and other institutions and more importantly foreign investors. Foreign governments are also keenly watching the election and expect much from the coming government. 
However survey that was conducted among 450 CEOs, has cautioned regarding this over expectations. “There are risks of highly built up expectations. Any deviations in the election results, contrary to expectations can be very harmful because that can lead to a knee-jerk reaction,” ASSOCHAM report said.
As per the report majority of CEOs predicted that optimism regarding the business scenario increased manifolds, but 67% heads accepts that expectations are excessive on delivery front. On the other hand executives are quite bullish on the improvement in business sentiments that will result from pushing of reform agenda and promoting stalled infrastructure projects by giving fast environmental clearances. While, 54% executives were of the opinion that spurt in economic growth and taming inflation will take long time to show improvement. 
Assocham has included top executives from different sectors like finance, banking, manufacturing, IT, banking etc. for this survey that was conducted in March 2014. Survey was conducted on Pan India basis that include cities like Delhi, Mumbai, Bangalore, Kolkata, Ahemdabad, Chandigarh etc. 
“The run-up in the stock markets in the last few months is another pointer to a huge level of expectations. Our survey shows there was never such level of expectations from a new government. For the new government, most important economic indicator requiring immediate action will be inflation,” ASSOCHAM Secretary General D S Rawat said.