THE triumph of the BJP — led by Narendra Modi — in the Indian elections has generated mixed sentiments in business circles of Pakistan. The conservative rhetoric of Modi scares them.

But the promise of reforms to shore up the slacking Indian economy by a pragmatic party that delivered on the slogan of ‘India shining’ during its last stint in power excites them.

“We are keen on greater commercial interaction in the region. It will be beneficial for the private sectors of both India and Pakistan. The areas where they can complement each other, have already been identified by experts,” said the head of a private sector think-tank.

“Unfortunately, the process of closer economic ties has been kept hostage by the politics of acrimony by hawkish elements on both sides of the border. This serves none, and those suffering are the teeming millions in the two biggest nations of South Asia aspiring to live in dignity.”

Asked if the Nawaz Sharif government will manage to grant non-discriminatory market access (NDMA) to India as soon as the Modi government assumes power, businessmen expressed skepticism.

Both India and Pakistan will now be ruled by governments enjoying the backing of two-thirds of legislators in their respective assemblies. It gives them power to implement their economic vision

“Much will depend on how the Modi government chooses to blend its projected ideology with economic pragmatism. If India wishes to put the economy back on the high growth trajectory of 9-10pc, it will be required to quickly implement economic reforms to cut subsidies and red tape, make market more accessible to trading partners, besides improving the economic environment to be more conducive for foreign investors,” commented a business leader in Karachi.

Some other businessmen see the 2014 election results in India in many ways similar to the outcome of the 2013 elections in Pakistan. “Wary of weak ineffective coalition governments, pulled in different directions by partners, both India and Pakistan will now be ruled by governments enjoying the backing of two-thirds of legislators in their respective assemblies. It gives them power to implement their economic vision.

“The people of the subcontinent — over a billion in India and 200 million in Pakistan — gave a clear mandate. They made sure that leaders of the ruling parties in Pakistan and India can no longer blame others for their failures. I have no doubt that the same voters will turn the table on them in the next elections if they fail to deliver.

“They will have to leverage under-utilised resources in men and material and remove irritants to improve competitiveness and productivity,” says an analyst scared of the pitfalls of associating with people identified to be pro-India by powers that matter.

He says he particularly dreads anti-India elements who tend to equate better relations with India with surrendering to its hegemonic designs.

“We in Pakistan cannot escape the effects of policies of Modi, who is known to be a polarising politician. We hope and pray that he desists the temptation of exploiting tension with Pakistan to gain political capital, and concentrates on development through capital formation at a higher pace,” a businessman told Dawn over phone from Lahore.

“It is hard for us to ignore the BJP’s links to RSS and its hate politics. The economic reforms in India, which is a bigger and more complex country than Pakistan, can become a benchmark for us to emulate,” Kamran Mirza, who is disappointed with the delay in the decision by the Nawaz government to grant NDMA to India, commented over the evolving scenario in the region.

“The people of India — as much as the world beyond — hope to see him generating employment and as a leader promoting development, and not as someone thriving on dangerous communal politics,” he added.

There are some detractors who are critical of Pakistan’s approach, which they find too soft towards its archrival in the region.

“I see little scope for an agreement with India that benefits Pakistan. India talks us down, and pounces on every opportunity at international forums to denounce us. I give the champions of the cause of the NDMA the benefit of doubt, and consider them delusional. India will not be a part of any initiative that serves Pakistan’s interests. More so now that Modi is leading it,” a successful corporate lawyer told Dawn from Lahore.

A reputed US professor, Ashutosh Varsney, is reported to have said: “Hindu nationalist visionaries have typically been better in dealing with Pakistan”. He was probably hinting at the interaction between Atal Bihari Vajpayee and Nawaz Sharif in the late 1990s, which then led to an improvement of bilateral relations between India and Pakistan.

Published in Dawn, Economic & Business, May 26th, 2014