Howdy, India!

The bonhomie and camaraderie shown by US President Donald Trump and Indian PM Narendra Modi at the ‘Howdy, Modi’ event at Houston was, at the very least, a diplomatic success by India. Though both leaders played to their respective political galleries, both leaders walking hand-in-hand for a considerable distance can be considered a diplomatic coup by India! Prior to that, both leaders were tough on Islamic terrorism. And that stood out in their respective speeches. PM Modi’s speech was full of poetic rhyming too. NRG, energy and synergy. Reciting couple of lines from a poem written by him, etc. Wish they had a lot more to say on what are the plans for supporting each other’s economies too.

Indian government has done what it knows to do best to boost sagging economy. Reduction in corporate taxes. What is left to be done is boosting foreign investment and exports from India. This requires a little support from friendly stronger economies such as USA. Walking the talk through higher investments and better trade would have made more meaning to walking hand-in-hand of the two Heads of States.

The stock market rally of nearly 2000 points in Sensex on Friday last needs a strong follow- through too. Else, the questions on why did the FM host the press conference in morning as against traditional evening time become fodder to conspiracy theorists. PM Modi did say that he is scheduled to meet President Trump to discuss economic issues in next 2-3 days. I am hoping a big announcement impacting economic growth in India.

This Howdy Modi meeting also raises a question about a RBI Governor saying, a few days earlier, that the economy will bounce back soon. Did he know about corporate taxes being reduced; does he know about big-ticket announcements expected later this week? The corollary is a few other questions: has he succumbed to the politicians? how many others knew about these announcements? And is the aam aadmi taken for a ride again? When such abrupt rises in stock markets happened in the past, they said that politicians are behind it. Now, what is the story?

The fact that Indian economy is encountering sluggishness cannot be denied. The first two quarters of the fiscal are almost gone. The festival season is too close to comfort. With only tax reduction, corporates are unlikely to loosen their purses soon on employee bonuses and fresh hiring. There will be a lag of few months.

The tailwinds of lesser taxation, foreign investments, more exports, government investments in domestic infrastructure, etc. are important. With all these boxes ticked, we can expect more money in Indian’s pockets spurring consumption and therefore growth!

More important than Houston diaspora are those 610 million Indian voters, that PM Modi spoke of in his speech, also enquire ‘Howdy, Modi’. He needs to look into economy too.

Sushil Bahal is Managing Director of Raka Reputation Management Services Pvt. Ltd., an 19-year old, Mumbai based PR and Advertising company offering integrated communication solutions. Raka Reputation has experience across sectors, particularly Banking, Financial Services, Healthcare, Hospitality, Education, Lifestyle, Manufacturing and Technology. With nearly 250 IPOs in last decade, Raka Reputation has been associated as a communications partner to some of the most complex challenges.

Please visit the website www.rakareputation.com for any further information. Sushil can be contacted on [email protected]