'Unstable govt likely after 2019 Lok Sabha polls': Union Minister Jayant Sinha

Mumbai: Union minister Jayant Sinha on Thursday said the “most likely” outcome of the ensuing Lok Sabha elections is that India may not get a strong and stable government. The country has transformed and the priority now is to inform the people about this change, the minister said.

“If indeed we end up in a situation where we don’t have a strong, stable government, (which) I think that is in fact the most likely case, I think that will be something that will not be good for India going forward,” he said, speaking at the CNBC-TV18’s India Business Leadership Awards in Mumbai.

“For us the goal is to inform, to ensure that people understand all that we have done and all that is at risk consequently,” Sinha said.

Sinha’s remarks come in the backdrop of the setback the ruling BJP suffered in Assembly elections in three Hindi heartland states recently.

Speaking at the event, industrialist Sajjan Jindal called the (2019 Lok Sabha) elections as one of the biggest risks (to the economy) the country is staring at. On his expectations from the next government, he said the influence of state-run companies should diminish.

Agreeing with him, banker Uday Kotak said we need to reimagine the financial sector, and the next government should be “seriously considering” how to handle state ownership in this crucial sector.

He was quick to clarify that he is not pitching for the private sector to take over the state ownership, but for the ownership to be broadened in such a way that the general public’s ownership in the companies grows.

Kotak also pitched for a 0.50 per cent cut in the repo rate by the Reserve Bank along with a cut in the cash reserve ratio.