Impact of expected Return of Modi Ji as Prime Minister of India on Indian Economy and Investment.
During his poll campaign, Prime Minister Narendra Modi has highlighted economic growth as one of his biggest achievements. He has “guaranteed” the voters that he would make India the third largest economy, two notches higher than its current position if he gets a third consecutive term. He has said that the development done in the last 10 years was just an appetizer and the main course would come in the third term.
The BJP’s manifesto promises include a lot of measures such as more bullet trains and a focus on solar energy, though it lacks any big-bang reforms. Modi’s possible third term is expected to uphold policy continuity while retaining emphasis on key drivers of growth. Bold reforms such as regarding land and labour might be announced during the term.
‘Make in India’ has been Modi’s showpiece economic project, and he has been promoting it with indefatigable zeal despite various challenges India’s services-led economy faces in creating industries. His manufacturing push is also intricately linked to India’s export growth and jobs creation.
Modi is luring manufacturers to the country with heavy incentives, such as tax cuts, rebates and capital support. The strategy is showing early successes with firms like Apple Inc. and Samsung Electronics Co. ramping up production in India.
Modi’s return will power India’s defence, infra stocks, Clean Energy, Capital Goods, PSU stocks etc in a big way.
These were areas where the government has focussed on, invested money. High probability that the ruling government will continue. If they return… they’ll go (with) much more vigor.
In his two terms, Modi has focussed on improving India’s ramshackle infrastructure and boosting domestic manufacturing, including in the defence sector. The government has proposed a record infrastructure spending of $133 billion in the financial year 2025.
