National Land Use Policy
On the lines of the existing National Land Use Policy, the new government is committed to streamline the process of acquiring non-cultivable land. The policy framework will be governed by the National Land Use Authority and will have to work closely with its factions at the State level and, also possibly, at the district level.
Business Optimism
According to a report by Grant Thornton this year, optimism amongst Indian business owners has improved on the back of expectation of a new and stable government
69% of businesses expressed optimism over the country's economy in 2014, as compared to 57% in the third quarter of last calendar year
90% of Indian businesses believe their revenues will rise in 2014 while 76% are most optimistic for increasing profitability this year
As per a survey of leading recruitment firms by the media, hiring in India has been rising since the advent of the current financial year.
Expectation is that hiring could rise anywhere in the range of 10-25% in the April-June 2014 quarter over the Jan-Mar 2014 quarter.
This change reflects the favourable transition of business sentiment rather than hard economic data.
Final Thoughts
Inflation and rupee health: The electoral result may not have direct implications on the inflation story. With higher investments flowing into the economy, the rupee will gain strength in the near-to-medium term
Exports: Exports is an external sector and is more dependent on the health of global economies than sentiment change in India. On the contrary, an immediate rise in business sentiment in India could lead to higher imports, which would worsen the CAD to some extent .
Anuj Puri, Chairman & Country Head, JLL India.
