The document summarizes the impact of Prime Minister Narendra Modi's government on business and consumer sentiment in India. It finds that while business sentiment has risen significantly since Modi took office, consumers have yet to feel the benefits and their sentiment remains uncertain. The business sentiment indicator increased from pre-Modi levels, with 39% of businesses reporting lower costs and higher sentiment. However, consumer sentiment declined, with lower income households feeling more pessimistic about their financial prospects than higher income households.

1. 142
Ease of doing
business index
Currently 142 (of 189) –
Modi wants India to be
in the top 50
Looking at the impact of the new government through the lens of MNI Indicators
Modi is the man for business
Consumers unimpressed with Modi
Measuring Modi’s impact on India
Impact of Modi's government
policies on business
Business
costs down
Business sentiment
is higher
Positive
39%
Negative
1.7%10%
after Modi, despite
easing in recent months
Jan 2014 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014
Pre-Modi Post-ModiElections
MNI India BSI
Future expectations
+2.8%
Higher income
households
more optimistic
-3.6%
Lower income
households
unconvinced
Nov 13 Mar 14 Jul 14 Dec 14
Consumer sentiment
in November
1 year
low
MNI India Consumer
Sentiment Indicator
MNI India Business
Sentiment Indicator
North +1.6%
East -2.6%
West -0.5%
South -1.3%
-11%
MNI Input Prices Indicator
down since Modi was elected
India's businesses have reacted well to new Prime Minister Narendra Modi, with sentiment
rising during 2014. Modi has still not, however, won over the majority of consumers who
have yet to feel any benefit from the new government.
Consumer sentiment split
by income group
(change after Modi)
The regional picture:
Impact of Modi seen
through MNI
consumer sentiment
Household finances
down after Modi
said their financial situation
was better than a year ago
50% 30%
Pre-Modi Post-Modi
-3.2%
Mumbai
-0.2%
Bengaluru
+2.4%
Delhi
+1.7%
Kolkata
-7.9%
Central + 1.6%
Insight and Data for better decisions
mni-indicators.com
Top 50
On the way to the top 50?
Modi boost yet to
be seen amongst
consumers…
The RBI raised interest rates by
25 basis points to 8% (the third
rate hike by Raghuram Rajan)
28 May 2014
Modi takes office as India’s
15th Prime Minister
Modi announces 10 key
government objectives,
ranging from infrastructure
to foreign investment
Launch of 'Make
in India'; a plan to
make India a
manufacturing hub
CPI inflation
at record low
Deregulation
of diesel prices
India in 2014