Narendra Modi govt has made no improvement to investment climate, says Deepak Parekh, HDFC Chairman

According to Deepak Parekh, Chairman of HDFC there have been no improvement on ease of doing business in the country necessary to kick-start growth despite the government's promise. Mr Parekh cited the example of delay faced by his own group's HDFC Bank with regard to approvals required for raising of funds.

Prime Minister Modi, he said, has had a "lucky nine months" with the fall in oil prices. The dramatic fall in global oil prices resulted in a sharp fall in inflation and narrowed India's trade deficit to an 11-month low, easing the fiscal pressure on the government.

He added that PM Modi's ambition "Make in India" initiative cannot succeed unless it is made easier for people to do business here and the decisions are fast-tracked.

A lack of demand in the economy has weighed on corporate earnings; the country's largest companies have reported a fall in profits for the third straight quarter ending December, which means each quarter since PM Modi was elected in May last year.

A majority of business leaders had earlier, in an Assocham survey, said "not much" has changed on the ground in the last six months, while many of them do not foresee any change in investment plans even during the current quarter. Though they have expressed optimism about the shape of things to improve going forward.

This signals that Industry is getting impatient and wants results from the Narendra Modi government. Mr Deepak Parekh has always been vocal with his views. Earlier too, Mr. Parekh was among the first industry leaders to speak up on the ‘policy paralysis’ in the UPA government.