BY RUPA SUBRAMANYA
MAY 7, 2015
A year ago this month, corporate titans around the world celebrated the victory of Narendra Modi’s Bharatiya Janata Party (BJP) in India’s elections. In a country where radical leftists still exert a mighty influence in some states and on the intellectual center of gravity, Modi’s platform was unapologetically pro-business. But to make India more friendly to the free market, Modi has had to step on the toes of some of the same business leaders who backed him.
Modi, before becoming prime minister, as chief minister of Gujarat was widely seen as presiding over one of the most business-friendly state governments in recent memory. Many of India’s top CEOs all but openly backed Modi and the center-right BJP last year. The result was a landslide victory in which the long ruling center-left Congress party was ousted from power. Now, however, some of these same business leaders have changed their tune, and there are more than a few grumblings of dissatisfaction.
In February, Deepak Parekh, chairman of Housing Development Finance Corporation (HDFC), a major financial institution, complained of “a little bit of impatience” regarding what he saw as the lack of change on the ground in the business environment. In March, following the budget, Anil Manibhai Naik, chairman of Larsen & Toubro, a major engineering and construction conglomerate, said that the government’s steps to revive the economy were not “adequate”. And, last month, Harsh Mariwala, chairman of consumer goods group Marico, took to Twitter to argue that the “sheen is falling” off the Modi government in the context of its promises and slow delivery.
What explains this backlash?