India's pro-business Modi

storms to historic election win

14 OF 15. Hindu nationalist Narendra Modi (L), the prime ministerial candidate for
India's main opposition Bharatiya Janata Party (BJP), seeks lessin!s from his mother
Heeraen at her residence in "andhina!ar ################Imtiyaz Razak
BY RAJESH KUMAR SINGH AND ADITI SHAH-NEW
DELHI Fri May 16,
(Reuters) - Narendra Modi tundered to !i"tor# on Frida# in India$s e%e"tion& troun"in'
te ru%in' Neru-(andi d#nast# in a seis)i" *o%iti"a% si+t tat 'i!es te Hindu
nationa%ist and is *art# a )andate +or s,ee*in' e"ono)i" re+or).
Modi's landslide, the most resoundin! election $ictory India has seen in %& years, 'as
'elcomed 'ith a listerin! rally on India's stock markets and raucous celerations at
offices across the country of his Bharatiya Janata Party (BJP), 'here supporters
danced, let off fire'orks and handed out s'eets(
)he BJP looked certain of a parliamentary ma*ority, !i$in! the +%#year#old former tea#
seller ample room to ad$ance reforms started ,% years a!o y current Prime Minister
Manmohan -in!h ut 'hich stalled in recent years(
-peakin! to a sea of people dressed in the party's official oran!e colors and chantin!
his name in his home state of "u*arat, Modi thanked the nation, and immediately
addressed concerns his pro#Hindu leanin!s 'ould sideline minorities(
.)he a!e of di$isi$e politics has ended, from today on'ards the politics of unitin!
people 'ill e!in,. Modi said( ./e 'ant more stren!th for the 'ellein! of the
country ((( I see a !lorious and prosperous India(.
-in!h's 0on!ress party suffered its 'orst 'ipeout, a i! oost to Modi's !oal of endin!
the dominance of the Nehru#"andhi family that has !o$erned for most of the +1 years
of independent India(
-in!h, 'hose party looked set to 'in less than 2& of the 23% parliamentary seats at
stake, con!ratulated Modi 'ith a telephone call( Party president -onia "andhi and her
son 4ahul 5uickly conceded defeat(
)he desire for chan!e has een so stron! that $oters put aside concerns aout Modi's
Hindu#centric politics(
.India's economy 'as in the doldrums( /e ha$e hope that he'll lift up the economy,
that he'll create *os,. said -hailesh Jha, ,6, emracin! a *uilant !roup of friends at
the BJP's 7elhi head5uarters(
Jha echoed the sentiment of those 'ho elie$ed Modi's promises of economic !ro'th
to meet the demands of millions of youn!sters 'ho reach 'orkin! a!e each year and
could oost India's producti$ity if !i$en *os(
/ith more than si8 times the seats of its closest ri$al, Modi's is the most decisi$e
mandate for a leader since the 96:3 assassination of prime minister Indira "andhi
propelled her son to office( -ince 96:6, India has een !o$erned y coalitions(
By 9& p(m( (9,%& ;-)), the BJP had 'on or 'as 'innin! in ,:, seats in parliament,
countin! trends sho'ed, comfortaly across the half'ay mark of ,1, re5uired to rule(
<n alliance led y the party 'as ahead in %3& seats, )= channel N7)= said(
In /ashin!ton, the >ama administration con!ratulated Modi and the BJP and said
he 'ould e !ranted a $isa for ?(-( tra$el( /ashin!ton denied Modi a $isa in ,&&2 o$er
sectarian riots in "u*arat three years earlier, 'hen he had *ust ecome chief minister of
the state( More than 9,&&& people, most of them Muslims, 'ere killed(
M<4@;)- -><4
4espondin! to the ne's, Indian markets !ot off to a roarin! start, 'ith the rupee
reakin! elo' 26 to the ?(-( dollar, an 99#month hi!h, and the enchmark stock inde8
*umpin! + percent to a record hi!h efore parin! its !ains(
Bettin! on a Modi 'in, forei!n in$estors ha$e poured more than A9+ illion into Indian
stocks and onds in the past si8 months and no' hold o$er ,, percent of Mumai#
listed e5uities # a stake estimated y Mor!an -tanley at almost A,:& illion(
?nlike his predecessors, Modi 'ill not ha$e to deal 'ith unruly partners as he
implements reform( )hat could usher in profound economic chan!es, 'ith some
supporters ima!inin! him as India's ans'er to Mar!aret )hatcher(
He 'ill try to replicate his success in attractin! in$estment and uildin! infrastructure
in "u*arat, the state he has !o$erned for more than 9, years(
.He can afford to ha$e a smaller ut stron!er cainet, that means a far more decisi$e
!o$ernment( He has een sayin! less !o$ernment and more !o$ernance, 'e are really
likely to see that,. said Na$neet Munot, chief in$estment officer at -BI Bunds
Mana!ement in Mumai(
But 'ith India's economy sufferin! its 'orst slo'do'n since the 96:&s and attlin!
hi!h inflation, it 'ill not e an easy task to meet the hopes of millions of Indians 'ho
ha$e ou!ht into the idea that Modi 'ill 5uickly push their country onto the top tale
of !loal economic po'ers(
His party also lacks stren!th in the upper house of parliament, 'here ackin! is
needed for le!islation to pass(
.It's important to e realistic aout ho' 5uickly they can insti!ate chan!e( It takes time
to, numer one, !et economic reforms throu!h the political machinery and, numer
t'o, it also takes a 'hile efore economic reforms actually ha$e a positi$e impact,.
said Leif ;skesen, an economist at H-B0 in -in!apore(
7;-I4; B>4 0H<N";
India's election 'as the 'orld's lar!est( -ta!!ered o$er fi$e 'eeks, a record of more
than 2&& million allots 'ere cast from the Himalayas in the north to the tropical
south, 'ith $oters ra$in! listerin! heat for a record ++ percent turnout(
-ince ein! named as his party's candidate in -eptemer, Modi has flo'n %&&,&&& km
(9:+,&&& miles) and addressed 321 rallies in a slick, presidential#style campai!n that
roke the mould of Indian politics(
Modi contrasted his humle roots 'ith the cloistered life of pri$ile!e of his dynastic
ri$als(
He ran circles around his slo'#footed opponent 4ahul "andhi, 3%, from the 0on!ress
party 'hich his family has dominated since his !reat#!randfather, Ja'aharlal Nehru,
led India to independence from Britain in 9631(
4ahul, his Italian#orn mother, -onia, eside him, shouldered lame for their party's
rout(
.)he 0on!ress has done pretty adly, there is a lot for us to think aout( <s $ice
president of the party I hold myself responsile(.
Both mother and son held onto their o'n seats, ut these 'ere the only ones their
party clinched in the crucial state of ?ttar Pradesh, 'hich sends :& la'makers to
parliament(
Prime Minister -in!h launched reforms in 9669 as finance minister that opened India's
socialist economy to !loal capital, ut his spell in the top *o ended marred y
corruption and a flounderin! economy amid mountin! policy paralysis( He has already
id fare'ell to his staff after 9& years in office(
)he dark chapter of $iolence a!ainst Muslims that occurred on Modi's 'atch in "u*arat
has mattered less and less to many, includin! a alloonin! middle class alarmed y
d'indlin! purchasin! po'er and *o opportunities as the economy slumped to su#
fi$e percent !ro'th in the last t'o years(
Modi has promised that, if elected, he 'ould take decisi$e action to unlock stalled
in$estments in po'er, road and rail pro*ects to re$i$e economic !ro'th(
)a8 and laor market reforms, acked y a !radual openin! up to forei!n in$estment,
'ould seek to create the 9& million *os that <sia's third#lar!est economy needs e$ery
year to asor youn! people enterin! the 'orkforce(
(<dditional reportin! y Brank Jack 7aniel, 4a*esh @umar -in!h, <ditya @alra, 4a*esh
@umar -in!h, Malini Menon and )ommy /ilkes in Ne' 7elhi, and -an*ee$ Mi!lani in
<hmedaad, IndiaC /ritin! y Brank Jack 7aniel and John 0halmersC ;ditin! y Mike
0ollett#/hite and Mohammad Dar!ham)