Why PM Modi is Being Compared to Sachin Tendulkar

Mangalore Today Network-1

New Delhi: June 17, 2015: Real estate consultant Jones Lang LaSalle has drawn parallels between the performance of Prime Minister Narendra Modi and cricketing legend Sachin Tendulkar while reviewing the one-year tenure of the present government.

"Present situation of Mr Modi is like that of Sachin Tendulkar during his playing days," JLL said in its report titled ’Rebooting Indian Real Estate’.

"Despite scoring many runs, Sachin getting out before making a century was considered as a disappointing performance. Given the high expectation associated with Mr Modi, even his best performance will be analyzed too critically; despite performance from others below par," it added.

According to JLL, PM Modi has transformed the image of India from being a slow-moving economy to one which is agile in terms of policymaking.

"Prices have stabilised, obsolete institutions are being reorganised and there is an increased focus on better governance... Several major announcements have been made that have not only excited domestic markets, but have also garnered interest from across the globe," the report noted.

However, the consultancy expects Mr Modi’s resilience to be tested in the coming days.

"Unmet commitments could be lethal at a time when the Indian electorate and the political opposition are keeping an eagle eye on his every move," JLL said.

The report comes at a time India’s real estate sector is facing a crisis-like situation. Residential realty prices have seen correction in many places amid a glut of supply and weak demand. Developers are struggling with high debt and interest rates continue to be high despite three rounds of easing by the RBI in 2015.

The realty sub-index on the Bombay Stock Exchange has crashed 33 per cent over the last 12 months as compared to a 5 per cent gain in the broader Sensex during the same period. The huge underperformance of the realty sector illustrates the kind of troubles builders are in.

On the policy front, the Land Acquisition Bill and the Real Estate Bill have not been cleared by Parliament despite the government’s push. There has been little movement as far as some of the government’s grandiose programmes (e.g. housing for all by 2022, smart cities, etc.) for the realty sector are concerned.

"The task of constructing 2.34 million homes every year compared with the actual delivery of 1.2 million homes during the 11th five-year plan period (ending March 2012) is huge. As of now, matters definitely do not look upbeat on this front," JLL said.

However, the consultancy makes a case for giving more time to the government to meet the industry’s expectations and its own goals.

"Initiatives such as developing affordable residential projects, robust infrastructure and the financial inclusion of the low income group segment in the banking sector are important initiatives, but require time to fructify. Critical evaluation of success at this stage may be premature," the report said.