Labour reforms on the horizon under Narendra Modi ?

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The Republic of India’s labour laws have been often cited as “archaic” or regressive, and as one of the reasons for India’s employment problems. According to media reports, the Rajasthan state government (BJP ruled) has proposed to bring about changes to the labour laws which apply in Rajasthan. It has proposed to amend the Contract Labour Act, the Factories Act, and the Industrial Disputes Act to make them less stringent.

Contract Labour Act Currently Applies to companies with more than 20 workers. Proposed to Apply to companies with more than 50 workers
Factories Act Currently Applies to

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FDI in Defence to Boost Manufacturing in India

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The Department of Industrial Policy and Promotion (DIPP) has prepared a draft cabinet note that proposes to allow upto 100% foreign direct investment (FDI) in defense to boost domestic manufacturing. The note proposes allowing 49% FDI in case of no technology transfer; 74% FDI in case of a technology transfer; and 100% FDI for transfer of state-of-art technology. Currently, only 26% FDI is allowed in defense manufacturing.

India’s defense establishment is a major

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HDFC Bank Ready for Industrial Uptake & Economy

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Mr Paresh Sukthankar, Deputy Managing Director reiterated that the bank is well positioned to exploit an investment cycle recovery – the stable funding base and capital position are key strengths. Operating leverage is still to play out and cost-income could improve further.

HDFC Bank should see a steady upturn in system loan growth to ~16% in FY15 and 18-20% in FY16. Management believes its strong balance sheet gives it an opportunity to strongly participate in any recovery, given its low NPLs and strong capital position. Low system deposit growth is a risk and management believes a focus on

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What’s the 100 Day Focus of NaMo led NDA Government ?

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Discussions with those who are well-versed with Narendra Modi’s working style suggest that the key transition that India is now likely to undergo is that India will now be run by a man keen on seeking glory and greatness as opposed to the routine obsession of politicians with rent-seeking.

Analysts meetings key officials and likely ministers in Delhi over the last couple of days suggest that the first 100 days of the BJP led NDA Government are likely to be focused on the following,

Inflation
Discussions with policy experts suggest

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Can Modi Dismantle Politician-Businessmen Crony Capitalism ?

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Over the past decade, Business houses in India have gotten close to Cash Rich Corrupt Highly Congress Politicians defining an era of Crony Capitalism. However, such businesses men are non-competitive in nature and lack the basis tenet of Business. This model (whereby politician-promoter cliques collude to suppress competition and drive up prices of food, housing, land and other important industrial inputs) could be on the retreat as Narendra Modi is

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Will Lok Sabha Exit Polls on 13th May set Direction for Stock Market ?

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Indian Stock markets are more favourably disposed towards a Modi-led BJP/NDA Government and that his victory is now being assigned increasingly higher probability. Opinion poll forecasts for NDA have moved up from 165-190 in Jul-13 to 240- 265 in Apr-14, vs. 272+ required for a majority. Markets may react quite differently to actual outcome scenarios, in the short-term. Our discussions with investors suggest that a number closer to the 272 mark or more would be taken very positively, possibly euphorically near-term. A number below 220-230 for NDA may be taken negatively short-term. An in-between

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