This refers to the report "Major firms creating slowdown to hit back at PM: Ambit report" (May 21). Why have so many important companies in India been holding back capital expenditure during the last 12 months? This period coincides with the month when the Narendra Modi government came to power last year - it has completed a year in office this May.
The government has set its goals to clean up the system first and then launch economic reforms in a big way. This strategy of the Bharatiya Janata Party government has affected a part of India Inc in a big way. India Inc was happy with the the United Progressive Alliance regimes, when it had its massive share of uninvoiced and unreported transactions - a win-win situation for the then ruling party and India Inc. Now, with everything under the scanner, India Inc is finding it difficult to adjust to the new business environment.
Crony capitalists and contractors were thriving when most of the approvals were accorded for "consideration" under the table. No more so. Direct benefits transfer has taken away the subsidy fraud. Single-window clearances have taken away the pay-offs in other windows for approvals. Civil servants and bureaucrats have been mandated to deliver fast instead of holding back the files. The slow incremental steps taken in the last Budget suggest the steady path pursued by the government.
K V Rao, Bengaluru
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