Gadkari brings the “New BJP” to London: India Inc Interview

Gadkari brings the “New BJP” to London: India Inc Interview

Nitin Gadkari, the president of India’s main opposition Bharatiya Janata Party, arrives in London later today on a six-day visit that will focus on projecting the party under his leadership as progressive and development focussed.

On the eve of his “goodwill” visit, Gadkari speaks exclusively and candidly to India Inc about the recent Mumbai terror attacks and their impact on business, sustainable economic development, liberalisation, and how the BJP-ruled states such as Gujarat can be the blueprint for the party’s success at a national level.

What is the impact of terror attacks such as the most recent one in Mumbai on the business environment in India?

The perpetrators of terrorist attacks in India, especially repeated attacks in Mumbai which is the commercial capital of the country, have sinister designs to vitiate the favourable investment climate and disrupt the booming Indian economy.

It is a deliberate, well-calibrated and strategically planned agenda of those who are seen the world over as a failed state and have been adopting terror as a state policy.

But the strength of Indian democracy, the resilience of its economy, peace loving nature of its hardworking people and the vigilance of its vibrant media has withstood such onslaughts. We have frustrated their evil designs in the past, are doing the same now and will continue to do so in future.

The Indian economy is stable and any number of attempts by terror outfits will never be able to derail the favourable investment climate.

What are the BJP's key economic plans/changes if it comes to power?

The present growth under Congress-led UPA is not inclusive.  Inflation is at an all time high and investments in key areas like infrastructure have slowed down drastically. It has a combined effect on daily lives of the common man. The total failure in creating jobs has led to an environment of non-confidence.

So our utmost priority shall be to infuse confidence among investors and the economy and focus on generating large-scale employment, like we did during BJP-led NDA regime, where we generated more than 12 million jobs per year.

The focus will be on infrastructure development, agriculture, rural infrastructure, power, housing etc.

The country's growth rates have been impressive but what more should/could have been done?

The growth has not reached each and every section of society. The agriculture sector, which caters to over half of the population, is still neglected and large scale farmer suicides are taking place.

This growth is jobless growth; we need to devise a mechanism where fruits of development reach the last man in the row.

Our approach towards irrigation and water management needs a relook. Diversification of agriculture to energy and power sector shall help farmers generate more income and change their lives. Area of non-conventional energy, bio fuels holds future potential.

What are your views on opening up the country to multi-brand retail?

Bharatiya Janata Party has been always at the forefront of economic reforms and believes that government’s role is confined to drafting sound laws and its strict enforcement. The actual job of economic activities should be left to non-governmental business enterprises.

BJP is not against FDI per say and has always welcomed foreign investments in the areas where large-scale capital investment or high level of technology is involved.

The situation in the retail sector is a little different in India where organised retail is less than 15 per cent and the rest is unorganised small retailer. This large-scale unorganised retail has generated huge employment across India.

Various reports and studies have suggested and hence it is perceived that if organised multi-brand retail sector is opened up to foreign investments, it may hamper the interests of these small unorganised retailers. Therefore, the BJP suggests that we need more debate on the subject so that interest of the small retailers is protected at the same time as adequate funds are made available to the organised retail sector to grow.

How would the BJP make the country's atmosphere more business-friendly to attract investment?

In recent times large-scale corruption at the highest level has dented the image of India as an attractive investment destination.

India with a billion-plus population is still one of the largest markets and fastest growing economies in the world.  The initiative at the highest level can help build this confidence. A pro-active approach, fast track decision making, transparency, accountability in governance and reducing red tape is key to good governance.

We are doing it in all BJP-ruled states and therefore we are proud to say that they are better governed than other states and are attracting large investments. Not only states like Gujarat and Karnataka, which are attractive investments destinations, but smaller states like Chhattisgarh, Uttarakhand and Himachal Pradesh have also been at the forefront of attracting investors.

Can Gujarat be seen as a blueprint for BJP's success?

Performance of the BJP government in Gujarat under the able leadership of Shri Narendra Modi is excellent. Gujarat in spite of political vendetta from the Congress-led central government has led to the path of progress and development. Various initiatives like river connectivity, focus on agriculture has brought change in the lives of the people of Gujarat.  We are definitely proud of this.

The BJP has been the only party to have created a Good Governance Cell and has organised two conclaves of chief ministers of BJP-led states for an exchange of ideas. And we are happy that all BJP-ruled states have taken various initiatives which are path breaking, like the Madhya Pradesh government’s scheme for promoting the girl child, Public Service Guarantee Act, effective Public Distribution System in Chhattisgarh and special agriculture budget by Karnataka government.

We have constituted a mechanism to share good practices amongst each other. Gujarat definitely has led us in this.

Are the corruption scandals making India a less attractive business proposition?

Definitely corruption at the highest level has dented the image of India at the international level. At the same time it has introduced the world with a more mature side of Indian democracy.

A democracy in which a strong and vigilant opposition, independent media and judiciary have played a pivotal role in unearthing this large-scale corruption at the highest level.

And therefore we can assure the world that the Indian constitution has its strong roots in democracy and can withstand this small turbulence. The BJP strongly feels that this temporary phase will be over and we shall be able to give a responsive, transparent and corruption-free government to the people of India.

What in your view are the biggest hurdles to India's continued growth?

India is a large country with different problems and needs. The biggest challenge for us is to ensure these fruits of growth reach the last person on the ladder. The rural infrastructure needs a big push. We will have to develop adequate infrastructure to cope with growing needs.

The other area of concern is agriculture and water management. As I said earlier making agriculture viable by using technology and diversifying it towards energy and the power sector will hold the key to change the scenario.

The third challenge will be generating the required skilled manpower. With a growing economy India needs enough skilled manpower to take advantage of this growth. This skill gap can be addressed by the industry, academic collaboration and infusing private investments in education and skills development.