KPMG India Deputy Chief Executive Dinesh Kanabar said irrespective of who becomes the next Finance Minister, the one thing that is clear is the country needs to get back to the path of rapid development if it has to emerge as an economic powerhouse and be spoken of in the same breath as China.
"The key to the revival of economic growth is the renewed investment, particularly in the infrastructure space. The FDI took a back seat thanks to the flip-flop on economic policies, clogging up of the approval process for large projects and confrontational tax policies. The first task of the new Government would be to deal with these three issues.
Leading boutique investment banker Singhi Advisors, which focuses on stressed asset sales, said the BJP-led Government should revive PPPs in the roads sector.
"The Modi Government must take a firm decision on many areas where investment climate has chocked up. We expect the new Government to initiate reforms in sectors like roads and power and attract investments in this (infra) space.
"As the financial viability of most infrastructure projects is under threat, and capital becomes too costly, there is a huge demand for cheap foreign capital or in-bound M&As, to meet the mismatch between the cost of capital and return on capital. That would lead to many domestic companies being compelled to take FDI route or sell out once the projects reach certain maturity," Mahesh Singhi, Managing Director of Singhi Advisors, told PTI.