A giant awakens: Aberdeen bats for Narendra Modi's India

Mumbai: Prime Minister Narendra Modi's economic reforms programme has been strongly endorsed by Aberdeen Asset Management, one of the world's biggest money managers. In a detailed report on the country titled 'India: The Giant Awakens', the asset manager has praised the Modi government for its continuous reform measures and added that he has done 'admirably well thus far'. "A common perception in

India is that the reform process is stalling and Modi's popularity is under pressure," Kenneth Akintewe senior investment manager, Fixed Income - Asia, Aberdeen writes in the report after a detailed visit to India where he met with RBI governor Raghuram Rajan, senior bankers and corporate executives. "Contrary to some reports, Modi remains popular and reforms have not run out of steam. Our trip to India reinforced our view that the seeds of significant structural changes have been sown."

Since taking over in May 2014, Modi government has announced a slew of reforms from Make in India, Swachh Bharat, overhaul in foreign direct investment (FDI) reforms and the latest cherry on the cake the much-delayed Goods and Services Tax bill.

"This time round, India is in far better shape and reforms have been implemented out of design, rather than need," the report said. "In less than two years, Modi's government has transformed India's political and economic landscape. Indeed, reforms were always intended to be long-term in na ture, rather than big bang. Almost every week, we come across seemingly intractable problems overcome by even more innovative solutions."

The report refers to the considerable challenges that remain but added that policy makers are committed to addressing them. "Where the government cannot find a way through a problem, it is seeking to find ways around it instead," the report added. "The whole experience highlighted that while some investment has taken place and more is to come, infrastructure is still poor," the report said. "It's, therefore, no surprise that Prime Minister Modi has announced the `Make in India' campaign, which aims to boost India's historically low infrastructure and manufacturing base, and create jobs and boost skills across 25 sectors of the economy."