Only months after winning the PMs office, Mr. Narendra Modi is fulfilling the promise of good times for India, made during the election. The positive signs are that the political uncertainty is now removed after the parliamentary elections. Mr. Modi is regarded as business-friendly and able to increase the confidence of foreign investors to India.
It seems that his leadership of this vast sub-continent is already demonstrated as Mr. Modi has already made some bold decisions that are good for trade and international business;
- Scrapping the Planning Commission, a remnant of the earlier centralised economic thinking.
- Implementing a development think-tank, for more liberal policies
- The individual states to make many of the decisions on policy and spending. (decentralizing)
- Eased labour laws and rethinking how welfare should cover the poor people of the state.
- The first budget sought to make tax collection more efficient, and a nationwide tax on goods and services is in the pipeline.
- Some of the new concepts that would make a big change for trade between India and the Nordic countries are:
- Open up India and make it a hub for exports and implement the components of "zero defect" manufacturing.
- Look into the (politically difficult) subsidy reforms.
- Early plans to reorganize agriculture
Distrustful ministers will be denied powers of sponsorship
Therefore, internationally the mood toward India is benevolent towards trade and investments.
India has already shown renewed signs of growth that can help global growth on track.
- In terms of the index of purchasing managers' activities, there is now more activity India's service sector than in the past two years.
- The political stability will lead to faster reforms that will put even more investments in the economy. (A sub-index for new orders rose to 54.3%, the highest since February 2013)
- Indian manufacturing industry grew, according to an index, the highest pace in four months.
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