As voting kicks off in India, the reported front-runner
Bharatiya Janata Party (BJP) has released its policy “manifesto,” laying out how the BJP would try to reboot India’s
stalled economy and help the country to recover what the party calls its
“innate vitality.” While scant on specifics and long on content-free
declarations like “We have to encourage our industry to innovate and
collaborate internationally,” the 52-page document did provide some clues into
which companies and industries might benefit if the BJP, as expected, gains the
most seats in this election.
√ Winners:
The BJP is open to foreign direct investment (FDI), on a
limited basis. “FDI will be allowed in sectors wherever needed for job and asset creation, infrastructure and
acquisition of niche technology and specialized expertise,” the manifesto
said, a definition that would seem to favor specialist companies that don’t
have an Indian equivalent, like:
Bombardier or
Siemens: The BJP has pledged to build a “Diamond Quadrilateral” high speed
rail line which would connect India’s four largest cities. Bombardier already
has a factory in party leader Narendra Modi’s home state of Gujarat and a
thriving high speed rail business. Siemens made the Gurgaon to Delhi rail line.
The opposition Congress party has also been exploring high-speed rail, and has
proposed north and south corridors.
Food-processing and Manufacturing
Companies. The BJP hopes to set up” ‘agro food processing clusters’, with
high value, export-quality and vacuum packed food processing facilities,” the
manifesto says. It also promises to grow India’s nascent manufacturing sector,
vowing to “make India a hub for cost-competitive labour-intensive mass
manufacturing.”
Walmart: There is one named exception to the BJP’s
pro-foreign direct investment stance: “the multi-brand retail sector,” or
stores that sell many different brands under one roof. That would reverse a
decision by the current Congress Party-led government to allow multi-brand
foreign retailers into the country. Walmart is reportedly investing 13 billion
rupees ($214 million) in its India business, much of that for online sales. The
BJP manifesto doesn’t specifically mention how it will handle e-commerce, and
India’s growing online sales are sure to draw attention.
Seed makers like Monsanto
and DuPont: “Genetically Modified (GM) foods will not be allowed without
full scientific evaluation on its long-term effects on soil, production and
biological impact on consumers,” the BJP states.
Nuclear experts like
GE: The US-India nuclear pact, a hallmark of the outgoing Manmohan
Singh-led government, failed to create a massive new market for power plant
companies in India, and the BJP promises even less bilateral cooperation. “We
will follow a two-pronged independent nuclear programme, unencumbered by
foreign pressure and influence, for civilian and military purposes, especially
as nuclear power is a major contributor to India’s energy sector,” the
manifesto says.
Overall, the BJP’s manifesto says it was written to address
a “multi-dimensional crisis….which has encompassed walks of life” thanks to the
current Congress Party-led United Progressive Alliance government, and calls it
a “Decade of Decay.” India’s economy has slowed in recent years as foreign
investment dropped and decision-making in Parliament ground to a halt, but it
has shown more growth, based on GDP and the stock market, than the last time
the BJP-led National Democratic Alliance (NDA), led the country, a recent research
paper shows.
