The crucial state election results—seen by many as a precursor to the general elections slated for next year — will boost investors’ confidence. Several multinational companies that are either looking at increasing investments in India or enter the country would be happy as the results would mean continuity of the existing policies. Importantly, the results will also ensure continuity of India’s current foreign policies especially in relation to boosting economic cooperation and cultural ties outside the borders.
“At this juncture, a loosely formed coalition government with parties of different ideologies may not augur well for the economy. Stability and continuity are key. The outcome (election results) will soothe the nerves of the investors,” a top executive of an American multinational told India Narrative. “The business community was becoming apprehensive over the Lok Sabha election result but for now, these results have boosted confidence,” he said.
The BJP convincingly won the states of Rajasthan, Madhya Pradesh and Chhattisgarh while the Congress will now form the government in Telengana.
Addressing a large gathering at the BJP headquarters in New Delhi, Prime Minister Narendra Modi said that women, youth, farmer and poor are the only four castes that exist in India.
“For me, there are only four castes in the country. Empowering our women, empowering our youth, supporting our farmers, and uplifting our poor families—strengthening these four castes is the key to empowering the nation,” Modi said, adding that the benefits of the government’s development model are reaching everywhere.
Exceeding expectations, India recorded a growth rate of 7.6 per cent during the second quarter of the current financial year. In the first quarter the growth rate 7.7 per cent.
Earlier, the World Bank noted that India, one of the fastest growing economies of the world, is poised to continue on the growth path, with aspirations to reach high middle income status by 2047. It also said that India made remarkable progress in reducing extreme poverty.
World Bank President Ajay Banga said that he was “more optimistic about India today as a whole” than he has been in a long time.
Modi noted that the election results have made it clear that the youth of the country seeks development and economic growth.
A host of schemes such as the PM Gati Shakti, Production Linked Incentive, Make in India, have helped in changing the dynamics of the Indian economy.