Click to play videoNew Delhi: Leadership is risky, and the Prime Minister can confirm that. But has the investment climate also turned risky following the political developments of the past few days?
When posed with this question, business leaders at a sales promotion for the latest management read, Bonsai Manager, typically did not take a bonsai view of things.
ED, Tata Sons, R Gopalakrishnan said, "There will always be change, there will always be risk."
Added Chairman & CEO, Jupiter Capital, Rajeev Chandrasekhar, "Investors pretty much factor in political volatility into investment decisions. I don't see a major impact of all of this."
Said CII President, Sunil Mittal, "This country can withstand shocks. We have had several elections in the past."
Most of the economic reforms on which the Left parties are not agreed upon are on hold.
These are the Contributory Pension Bill, the bill to lift the voting cap by 10 per cent per investor in private banks, the bill to raise the foreign direct investment in insurance from 26 per cent to 49 per cent, amendments to ease the Contract Labour and Industries Disputes Acts, permission for foreign investment in multi-brand retailing and privatisation of coal mining for third party sale.
A shaky Government spells political uncertainty, not instability. A Government in election mode might not take tough decisions, but that is not much changed from the situation now.
Investors, unlike day traders, might take a long term view, but they will wait for clarify before committing money. To that extent economic activity might be affected.
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