India Inc may be feeling the pain of bad debt and growth that’s still too sluggish for many companies but the Modi government gets a pat on the back for its work on the economy. An exclusive ET poll of the top 55 CEOs in India on the eve of the government’s first anniversary gives it kudos for reforms, cracking down on corruption and attempting to ease the rules of doing business.On the other hand, there is recognition that some policy changes seem to have got stuck, especially those relating to land acquisition and the goods & services tax (GST), and concern that a more vigorous policy shakeup is needed. “A significant change over the last one year has been the improved macroeconomic conditions, ” said Chanda Kochhar, MD and CEO, ICICI Bank.“GDP growth has picked up, inflation has eased and external sector indicators are stronger today. Government action has been seen on multiple fronts in the last one year, and the focus is not just on addressing immediate challenges, but also articulating a vision for India.” CEOs gave Modi Sarkar an average rating of seven out of 10.Finance Minister Arun Jaitley is rated six out of 10 with an overwhelming majority saying that much work remains to be done. Reserve Bank of India (RBI) Governor Raghuram Rajan got an average rating of eight out of 10 with many CEOs praising him for curbing inflation and keeping the rupee remarkably stable at an especially volatile time.The external factors are beyond the control of RBI and banks are keeping rates high, majority of the poll’s respondents said. To be sure, Rajan has often been criticised for his seeming reluctance to cut rates faster, especially amid slowing inflation and absence of a sharp revival.

The Modi government has been criticised for its failure to undertake bolder reforms. In the run-up to the first anniversary, many CEOs have publicly said that the efforts are not translating into higher demand and more investment on the ground. Interest rates are still high with banks reluctant to fully pass on this year’s 50-basis-point cut by RBI while high debt continues to plague corporate and bank balance sheets.

But the poll’s findings show a different mood. A majority of CEOs blamed debt and a rural slowdown for weak demand and sluggish investments, with only 18% saying the government has failed to deliver bold reforms. About 59% of the respondents said their firms are undergoing some form of capacity expansion while 66% were hopeful of a demand recovery in a year.The poll was conducted last week and top-ranked CEOs of a diverse set of sectors ranging from heavy engineering to online fashion answered a detailed set of questions on Modi regime’s overall performance and the travails of the land acquisition Bill.They were also asked whether the rules for doing business had been simplified and if the government was doing enough to tackle corruption. The findings suggest the government’s efforts may have started showing results, especially when it comes to tackling graft.Of the respondents, 78% said the government was doing a lot to curb corruption while 22% said things are still bad and that a lot of work remains to be done. A similar majority said corruption had declined in their dealings with bureaucrats and ministers.“The government under Mr Modi has been moving steadily and purposefully in creating a climate where it is easy to do business,” said Venu Srinivasan, chairman & MD of TVS Motor, India’s fourthlargest two-wheeler maker. “We have to give them enough time and have patience. Rome wasn’t built in a day!”Srinivasan is a former president of the Confederation of Indian Industry. The Modi government has emphasised infrastructure spending and attempted to hack away at the complex web of rules and procedures that govern corporate investment.In the past one year, it has also passed crucial legislation allowing higher foreign investment in insurance and a new law permitting commercial mining of coal. But showpiece reforms such as a constitutional amendment needed to implement GST and the Bill to ease land acquisition procedures have been stalled.While a majority said the land acquisition Bill was important for investment, an equal number felt they would invest even if the changes were not made and the older version of the law remained in force. This could be because the amendments apply only to a small section of investments such as those in defence and rural infrastructure.The Modi government draws some flak for failing to properly communicate the significance of the land acquisition changes but most blamed opposition parties for painting the move as anti-farmer. The Modi government’s efforts to cut red tape elicited praise for good intentions with a majority feeling that more needs to be done.RBI Governor Rajan had a hand in two major achievements of the Modi government — the sharp slowdown in inflation and the surge in foreign portfolio investments, though how much of a role he played in the latter could be open to debate.Inflation has fallen from double digits in 2013 while foreign fund flows have soared, thanks largely to a stable rupee and expectations of higher economic growth after the Modi government’s victory. About 88% of the CEOs felt Rajan had done a good job while 62% felt he had done whatever he could to cut rates.About 71% felt that external factors are responsible for high interest rates and an equally large number, 85%, felt that differences between RBI and the finance ministry are not hampering performance. The next monetary policy announcement is due on June 2. FM Jaitley got good grades for intent, with 78% feeling that more needed to be done though a number of good steps have been taken.