Modi can have obstacles in attracting investments if doesn’t get big mandate

Narendra ModiGujarat received huge investments during the reign of Narendra Modi because he has run the state like a CEO and not like a CM, an expert market observer said.

Hong Kong-based chief equity strategist Christopher Wood, of CLSA Asia-Pacific Markets, commended Mr. Modi for his ability and efforts to attract investments into the western state. However, he cautioned that he will have obstacles in attracting investments on the national level if he does not get a big mandate to run the country.

In a recent telephone interview, Mr. Wood said, "He's run the state like a CEO, not a chief minister . But if he doesn't get a big mandate to control the country the way he controlled the state, he'll have obstacles to attract investment the way he did with the Tata Motors factory."

According to a retired bureaucrat in Gujarat, minutes after industrialist Ratan Tata abandoned his plan to build Nano, the world's cheapest car, in West Bengal; he received a text message from Mr. Modi - 'Welcome to Gujarat'.

Speaking on the condition of anonymity, the bureaucrat added that within 72 hours, Mr. Modi arranged various facilities, including land, power, a four-lane highway and a Rs 95.7 billion loan along with tax exemptions for the Nano project in the state.

The Gujarat-based Nano plant now employs nearly 10,000 people, providing a big boost to the local economy.

On the other hand, investment proposals on the national scale slipped to around $95 billion in financial year 2012 from a peak of $289 billion a couple of years back.

Polls show Modi-led BJP winning the most of the Lok Sabha seats while falling short of a majority, which will require him to partner with some regional parties to form the government.