Modi’s Make-in-India call bolstered the foreign investment sentiment. By the end of 2014-15, the FDI inflow was up by over 61 per cent over the previous year to nearly $35 billion. The amount was small compared to the requirement of at least $100 billion per annum. In the current financial year, FDI in India could go up to anywhere between $50 and $90 billion. India is regarded as the best investment destination by global business leaders, including those from China which is witnessing economic slowdown and continuing stock price crash despite frequent government intervention.

India suddenly emerged as the most promising region for foreign direct investment (FDI). But, foreign investors have started rethinking. Brief-tenured executive ordinance is no substitute for law in a democratic country. The government promulgated ordinance for the second time to push a new land bill. Even this one is set to be infructuous soon. The paradox is the government, despite a massive public mandate, is held hostage in both the houses of Parliament. Can this India be trusted by serious long-term global investors?

Among those lined up large investments in India are Alibaba (China), Foxconn Technology Group (Taiwan), Google (US) in education, Google Fibre broadband services and Street view, Warburg Pincus (US), Gap Inc. (US), Dalian Wanda Group (China), Microsoft Corporation (US), Royal Dutch Shell PLC (UK and the Netherlands), Nando’s (South Africa), BrightSKY (US), Carlyle Group US), Bosch (Germany), Softbank (Japan) and Wal-Mart (US). A host of global pharmaceutical giants from the US, EU and Japan plan to invest in India. Defence manufacturers and insurance companies too have big plans for India which is expected to add at least one trillion dollar to its GDP in every five to six years. The International Monetary Fund sees India overtaking even the US and China in due course if it is able to maintain eight to 10 per cent growth rate in the next 15 years. Presently, India is the fastest growing large economy in the world.

The most painful is the performance of BJP or NDA in Lok Sabha, which is unable to manage the floor despite its combined strength of 337 in the 543-member House. BJP alone occupies 280 seats. The function of the most important lower House is blocked by a small shouting brigade of 25 to 30 Opposition members led by Congress demanding resignation of BJP chief ministers in Rajasthan and Madhya Pradesh and the external affairs minister in the union government on the basis of allegations posted in the social media such as twitter and facebook and unnatural deaths of witnesses in an allegedly rigged recruitment case called Vyapam in Madhya Pradesh which is under-investigation. Opposition MPs themselves have little admissible proof so far to justify those allegations.

It is rather inexplicable that despite its 337 MPs in Lok Sabha, the NDA is unable to move proceedings in the House. Both the NDA and Lok Sabha speaker would have appeared to have let down the people of the country, who gave overwhelming mandate to BJP and its allies to lead the country’s economic development and provide political stability and national security. On a few occasions this year, Finance Minister Arun Jaitley spoke about passing key bills in Parliament through joint sessions. What is holding the NDA back to execute the threat? Without even clear mandate in all-important Lok Sabha, Congress and its allies have ruled the country for 15 years – first, under Narasimha Rao and, then, under, Mrs. Sonia Gandhi-Dr. Manmohan Singh combine. The global financial crisis of 2009 followed by repeated financial scams unearthed by the Comptroller and Auditor General of India (CAG) and the Central Bureau of Investigation (CBI) check-mated the Congress-led UPA government till it was shown the door by the public in 2014 Lok Sabha election.

The country’s economy suffered badly for almost full five years between 2009 and 2014. No constitutional authority such as CAG or independent investigation by CBI or CVC is yet to put the Narendra Modi government or BJP in similar awkward situation. As of now, BJP controls majority Assembly numbers in eight states. In addition, BJP with political allies are in power in four other states and one union territory. Unfortunately, the Party is getting cornered daily by its opponents on issues – from foreign infiltration to flood – that seemed to have remained constant and endemic since the country’s independence.

BJP’s inability to take strong decisions and get them implemented despite the public mandate have been causing a concern among overseas investors who thought India could be a safe haven for at least the next 10 to 15 years, especially in the wake of China’s seeming economic meltdown, poor EU growth rate and falling oil prices that threaten to bring down a host of economies around the world except probably India, one of the world’s largest importers of fossil oil and energy.

A falling investor confidence in India poses a threat to BJP’s ability to rule the country smoothly and fulfill its promises to the electorates. Industry associations in India, including an apex body such as the Confederation of Indian Industry (CII), have already voiced concern over the continuous blockade of parliamentary proceedings. At a stake is India’s development, its future. If the trend follows, no party in power would be able to ensure operation of the country’s legislature. Parliamentary democracy in India has never been under such a threat. (IPA Service)