Things to watch out for: Lok Sabha election and FDI

With the dawn of a new year, how do you see 2014 to be? Will it be good for the economy and jobs? What are the hopes and aspirations?

Students from Indian Institute of Management Shillong and Great Lakes Institute of Management Chennai share their views:

The year 2013 saw most of the companies curtailing their investments and hiring, preferring to fill the key gaps only, owing to policy inaction, retrograde tax decisions and weak macroeconomic scenario. But there are high hopes from 2014 in anticipation of elections, revival in the US market and increase in exports due to weak rupee. But still it is not safe to assume that India will be on its way to recovery.

Amit Sonwani, IIM Shillong

I feel India is going to see a revolution on the political front – with Nandan Nilekani speculated to be running for the post of Prime Minister or the Aam Aadmi Party which is garnering youth support.

The FDI would greatly benefit the Indian economy but it is likely that the BJP will come into power which cause hurdles for FDI implementation.

With the elections around the corner, India will surely see a cautious optimism in hiring in the traditional manufacturing sectors.

Ayushi Rohira, IIM Shillong

2014 seems to be a year with full of expectations with a lot depending upon the outcome of general elections.

With positive global cues such as reduction in unemployment rate in the US, positive growth rate in Europe set the stage for strong equity markets that are going to rely mostly on economic fundamentals. The potential of job market can be seen in IT, pharma, retail and banking sectors with changing FDI norms and bank licensing policies.

S. C. Chakravarthi, IIM Shillong

While QE tapering, rupee depreciation, inflation and fiscal deficit will bring the economy down, FDI policies, increasing index of industrial production, under-control CAD, and revival of G3 nations will act positively for the economy in 2014.

However, India is looking forward to a leader who can outweigh all the factors, show us vision and plans towards creating assets.

Narendra Modi is the hope of many in 2014 because he can bring businesses to India and make them run at our conditions.

Ankit Gadura, Great Lakes Institute of Management

India is in desperate need of reforms. Regulatory delay, judicial activism and delay in decision-making are major factors for economic slowdown.

Indian economy is likely to witness an economic growth rate of 5.3 percent in 2014, says the UN. Outsourcing, higher consumption and government spending will play a key role in 2014 for GDP growth. The employment scenario is likely to improve in banking, administrative, infrastructure, engineering, retail, logistics and hospitality sectors.

Gyan Singh, Great Lakes Institute of Management

Looking at the important components of GDP, private consumption is growing with a rising middle class,FDI in the country is expected to increase and an increase in exports is expected due to the weakened rupee.

In addition, national elections and improved global economic conditions are underway, leading to expectations of improved governance and faster growth in Indian economy.

With this optimism I expect that India to regain investor confidence leading to job creation, thus bringing cheer to our economy.

Vidhi Gupta, Great Lakes Institute of Management

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