After BJP's landslide victory in Uttar Pradesh and Uttarakhand, Prime Minister Narendra Modi's risk taking abilities will get further reinforced, said the Deputy Managing Editor of Mint, Anil Padmanabhan. After this win, Modi must now focus on the banks' NPA issues, he added.
"The government needs out-of-the-box solutions to deal with the NPA debacle. We will have to see if the PM will monetise the social capital that he has earned after this victory," he said.
While Padmanabhan is concerned about the country's bad asset problem, Mohandas Pai, Chairman of Manipal Global Education, is worried about the unemployment issue. He said the NDA government is more biased towards the capital intensive industry rather than job focussed ones.
"Tax rates of 30-35 percent for labour intensive industries and manufacturing industries paying only 25 percent effective tax as per the latest Budget and too much of automation and capital intensity. All this needs to change," said Pai.
He said this is a fantastic victory for government reforms. While infrastructure may go up after this victory, only hope is for the government to make special provisions to boost employment in the country, he added.
He is of the opinion that government should promote urbanisation to increase job opportunities in the country.
"Cities give you 75 percent of the total revenues and maybe 75-80 percent of total good jobs. So, we have to focus on cities, urbanisation has to accelerate. Tamil Nadu's per capita gross domestic product (GDP) is four times Bihar and Tamil Nadu is 52 percent urban as against Bihar which is 12 percent.
"So, focus on cities. In the next two years, if these are done, a lot of jobs will be created and that should carry them," he said.
However, Sanjay Dutt of Quantum Securities argues that jobs growth does not come in, in a year or two. It rather takes more than 10 years for the job scenario in the country to bounce back.
He added that BJP's manifesto for UP is pro development, and Modi will try his best to bring about an increase in employment opportunites in the state going ahead.