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UNCLAS SECTION 01 OF 02 NEW DELHI 000129 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PTER PREL PINR KDEM IN PHUM
SUBJECT: INDIA INC. ENDORSES MODI, BJP ANXIOUS 
 
REF: NEW DELHI 00109 
 
¶1.  (SBU)  Summary:  At a global investor conference in 
Gujarat on January 13, India's "captains of industry" -- Anil 
Ambani, Sunil Mittal, Ratan Tata, Mukesh Ambani and K.V. 
Kamath -- heaped lavish praise on Chief Minister Narendra 
Modi for developing Gujarat as one of the  nation's leading 
business and development hubs.  Anil Advani and Mittal 
announced that Modi would make an excellent prime minister. 
Not normally known for openly endorsing political candidates, 
they helped boost the national profile of Modi, a polarizing 
figure for his role in the 2002 Gujarat communal riots. 
While Modi has denied national aims for the moment, the Modi 
headlines pose some problems for the BJP by keeping alive 
stories of factionalism and petty infighting within the party 
in the run-up to the Lok Sabha polls due by April-May this 
year.  END SUMMARY. 
 
Modi is Ready for Prime Time, says India Inc 
--- 
 
¶2.  (U)  Five of India's most powerful business leaders made 
headlines last week at an international investment conference 
in Gujarat when they sounded an unequivocal and unqualified 
endorsement of Chief Minister Narendra Modi.  Anil Ambani, 
Sunil Mittal, Ratan Tata, Mukesh Ambani and K.V. Kamath -- 
the cream of India's big business -- praised Modi's skillful 
leadership that has steered the state into becoming one of 
the nation's leading industrial hubs.  They attributed 
Gujarat's healthy business climate to Modi's dynamism and his 
insistence on good governance.  They called for Modi's model 
of development to be replicated throughout India. 
 
¶3.  (U)  Chairman of Reliance-ADAG Anil Ambani and Bharti 
telecom and retail magnate Sunil Mittal went further by 
projecting Modi as a future prime minister.  Ambani said that 
Modi should be "the next leader of the country." Mittal 
asserted "all" business sectors have seen signs of progress 
under Modi's leadership.  "Now imagine what will happen if he 
leads the nation," Mittal added.  The others went only so far 
as to lavish praise on Modi for fostering good governance and 
a conducive investment climate.  Ratan Tata proclaimed that 
Modi had given the Nano car factory a safe haven "in record 
time" after political protests in West Bengal forced the 
plant to relocate in October 2008.  "I listened to my own 
advice that 'if you are not in Gujarat, you are stupid.' 
Perhaps I am not stupid any longer," Tata added.  Noting that 
Gujarat is growing at 12 percent, ICICI bank chairman Kamath 
observed that "Modi made it happen.  This should be 
replicated everywhere." 
 
BJP Underplays Modi Praise 
--- 
 
¶4.  (SBU)  The unusual public support from the business 
community caused some heartburn for the BJP which fears that 
such a spotlight on Modi necessarily diminishes the image of 
their chosen prime ministerial candidate, 81-year old L.K. 
Advani.  BJP spokesmen attempted to play down the 
endorsements noting that chief ministers receive "political 
guidance and inspirations" from central leadership.  One 
spokesman added that prime ministers are elected through 
democratic means, not through the support of business 
leaders.  Modi, who has always been scrupulously respectful 
and deferential to Advani, denied that he was in the race for 
the Prime Minister's post and reiterated that "Mr. Advani is 
our leader and the BJP will win the national elections under 
his leadership."  He accused Congress Party leaders of 
creating the controversy to shift the focus away from 
Gujarat's economic achievements. 
 
Congress Jumps 
--- 
 
¶5.  (U)  Gearing up for national elections, Congress Party 
operatives took the opportunity to further consolidate the 
 
NEW DELHI 00000129  002 OF 002 
 
 
party's vote bank, particularly among strategic Muslim 
constituencies, by reminding the electorate about the Modi 
government's complicity in the 2002 Gujarat riots.  Congress 
spokesman Manish Tewari expressed surprise that corporate 
leaders have endorsed Modi, pointing to his "abysmal" civil 
rights and governance record.  "The last time when such fatal 
attraction reached fruition with fascist forces the world had 
to pay a heavy price," Tiwari mentioned in reference to the 
cozying up of German industrialists to Hitler in the 1930s. 
BJP-leaning commentator Swapan Dasgupta responded that 
Tiwari, by invoking business support for Hitler in the 1930s, 
had unintentionally likened his own UPA government to the 
weak and feckless Weimar Republic. 
 
Comment:  Modi's Star Continues to Shine 
--- 
 
¶6.  (SBU)  The full-throated endorsement of Modi by five top 
Indian businessmen of India is highly unusual because Indian 
big business houses rarely align so publicly with one party 
or individual for fear of retribution.  Smart big business 
generally maintains linkages with all major political parties 
and donates agnostically to cover all bases.  Clearly these 
business leaders felt strongly enough to bend their own rules 
for someone who is a rising star in the BJP.  For Modi, it 
represents yet another important feather in his cap as he 
seeks to soften his hard-edged image.  We should also note 
that the endorsement last week was for Modi as an individual 
and not for the BJP as a party.  The endorsement may also 
reflect an electoral trend that may slowly be emerging in 
India -- that voter preferences are shaped increasingly by 
good governance and development credentials of the political 
leaders rather than the caste and other divisive social 
issues that figured prominently in previous elections. 
 
Comment:  Yet Another Distraction for the BJP 
--- 
 
¶7.  (SBU)  The Modi headlines cause two election season 
problems for the BJP.  First they propel once again into the 
headlines the BJP's Hindutva past because Modi is forever 
linked to the 2002 Gujarat anti-Muslim communal riots in 
which over 1000 people were killed.  Second, coming on the 
heels of former Vice President and BJP Stalwart Bharoin Singh 
Shekhawat's attacks on the BJP leadership (ref A), the Modi 
vs. Advani story continues to suggest factionalism and petty 
infighting within the BJP and puncture the image of a 
center-driven, disciplined political machine that party 
leaders would like to project.  END COMMENT. 
WHITE